UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 (MARK ONE)

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended September 30, 2025
 or

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from to
 Commission file number: 001-09318
 (Exact name of registrant as specified in its charter)

 Delaware
 13-2670991

 (State or other jurisdiction of incorporation or organization)
 (I.R.S. Employer Identification No.)

 One Franklin Parkway, San Mateo, CA 94403
 (Address of principal executive offices) (Zip code)

 ( 650) 312-2000
 (Registrant's telephone number, including area code)

 Securities registered pursuant to Section 12(b) of the Act:

 Title of each class
 Trading symbol(s)
 Name of each exchange on which registered

 Common Stock, par value $0.10 per share
 BEN
 New York Stock Exchange

 Securities registered pursuant to Section 12(g) of the Act: None
 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No
 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No
 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large Accelerated Filer

 Accelerated Filer

 Non-accelerated Filer

 Smaller Reporting Company

 Emerging Growth Company

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
 If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
 Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b)
 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No
 The aggregate market value of the voting common equity ("common stock") held by non-affiliates of the registrant, as of March 31, 2025 (the last business day of registrant's second quarter of fiscal year 2025), was $ 5.9 billion based upon the last sale price reported for such date on the New York Stock Exchange.
 Number of shares of the registrant's common stock outstanding at October 31, 2025: 520,970,580.
 DOCUMENTS INCORPORATED BY REFERENCE:
 Certain portions of the registrant's definitive proxy statement for its annual meeting of stockholders, to be filed with the Securities and Exchange Commission within 120 days after September 30, 2025, are incorporated by reference into Part III of this report.

 INDEX TO ANNUAL REPORT ON FORM 10-K

 FORM 10-K
ITEM

 PAGE
NUMBER

 ITEM 1.
 BUSINESS

 ITEM 1A.
 RISK FACTORS

 ITEM 1B.
 UNRESOLVED STAFF COMMENTS

 ITEM 1C.

 CYBERSECURITY

 ITEM 2.
 PROPERTIES

 ITEM 3.
 LEGAL PROCEEDINGS

 ITEM 4.
 MINE SAFETY DISCLOSURES

 INFORMATION ABOUT OUR EXECUTIVE OFFICERS

 ITEM 5.
 MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 ITEM 6.
 [RESERVED]

 ITEM 7.
 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 ITEM 7A.
 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 ITEM 8.
 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 ITEM 9.
 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 ITEM 9A.
 CONTROLS AND PROCEDURES

 ITEM 9B.
 OTHER INFORMATION

 ITEM 9C.
 DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

 ITEM 10.
 DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 ITEM 11.
 EXECUTIVE COMPENSATION

 ITEM 12.
 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 ITEM 13.
 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 ITEM 14.
 PRINCIPAL ACCOUNTANT FEES AND SERVICES

 ITEM 15.
 EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 ITEM 16.
 FORM 10-K SUMMARY

 EXHIBIT INDEX

 SIGNATURES

 FORWARD-LOOKING STATEMENTS
 This Annual Report on Form 10 K ("Annual Report") and the documents incorporated by reference herein may include forward-looking statements that reflect our current views with respect to future events and financial performance. Such statements are provided under the "safe harbor" protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and generally can be identified by words or phrases written in the future tense and/or preceded by words such as "anticipate," "believe," "could," "depends," "estimate," "expect," "intend," "likely," "may," "plan," "potential," "seek," "should," "will," "would," or other similar words or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements.
 Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that may cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. The forward-looking statements contained in this Annual Report or that are incorporated by reference herein are qualified in their entirety by reference to the risks and uncertainties disclosed in this Annual Report, including those discussed under the headings "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosures About Market Risk."
 While forward-looking statements are our best prediction at the time that they are made, you should not rely on them and are cautioned against doing so. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other possible future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. They are neither statements of historical fact nor guarantees or assurances of future performance. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.
 The initiation or unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or inquiries, including the Western Asset Management investigations described under the heading "Risk Factors" and in "Note 15 - Commitments and Contingencies" to our audited financial statements contained herein, may result in additional costs, monetary judgments, settlements or other remedies, including fines, penalties, restitution and/or alterations in our business practices or those of our specialist investment managers. In addition, these matters may cause reputational harm to us or our specialist investment managers and could result in additional expenses and collateral costs, outflows of assets under management or other financial impacts that could materially affect our results of operations and the price of our common stock.
 If a circumstance occurs after the date of this Annual Report that causes any of our forward-looking statements to be inaccurate, whether as a result of new information, future developments or otherwise, we undertake no obligation to announce publicly the change to our expectations, or to make any revision to our forward-looking statements, to reflect any change in assumptions, beliefs or expectations, or any change in events, conditions or circumstances upon which any forward-looking statement is based, unless required by law.

 Item 1. Business.
 OVERVIEW
 Franklin Resources, Inc. ("Franklin") is a holding company with subsidiaries operating under our Franklin Templeton and/or subsidiary brand names. Franklin's common stock is traded on the New York Stock Exchange (the "NYSE") under the ticker symbol "BEN" and is included in the Standard & Poor's 500 Index. In this Annual Report, Franklin and its subsidiaries are collectively referred to as the "Company," and words such as "we," "us," "our" and similar terms refer to the Company. We have one operating segment, investment management and related services.
 We offer our services and products under our various distinct brand names, including, but not limited to, Alcentra, Apera, Benefit Street Partners, Brandywine Global Investment Management, Canvas, Clarion Partners, ClearBridge Investments, Fiduciary Trust International, Franklin, Franklin Mutual Series, K2, Legg Mason, Lexington Partners, O'Shaughnessy, Putnam, Royce, Templeton and Western Asset Management Company. Unless otherwise indicated, our "funds" means the funds offered under our various brand names, which may include co-branded funds.

 We are a global investment management organization with over $1.6 trillion in assets under management ("AUM") as of September 30, 2025. Our mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through our specialist investment managers, we offer specialization on a global scale, bringing extensive capabilities in equity, fixed income, alternatives and multi-asset solutions. For over 75 years, we have been committed to providing clients with exceptional investment management services and have developed a globally diversified business, including through strategic acquisitions.
 We provide our investment management and related services to retail, institutional and high-net-worth investors in jurisdictions worldwide. We deliver our investment capabilities through a variety of products and vehicles and multiple points of access, including directly to investors and through financial intermediaries. Our investment products include our sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles. Our funds include registered funds (including exchange-traded funds, or "ETFs") and unregistered funds. Related services include applicable fund administration, sales and distribution, and shareholder servicing, which we may perform directly or outsource to third parties. We also provide sub-advisory services to certain investment products sponsored by other companies that may be sold to investors under the brand names of those other companies or on a co-branded basis.
 We offer our clients the combined experience of our investment professionals with expertise across asset classes and a sharp focus on managing risk. We are committed to delivering strong investment performance for our clients, and to offering a broad range of strategies and drawing on our diverse experiences and perspectives gained through our long history in the investment management business. We know that success demands smart and effective business innovation, solutions and technologies, and we remain focused on investment excellence, innovating to meet evolving client goals, and building strong partnerships by delivering superior client service. We continue to focus on the long-term investment performance of our investment products and on providing high quality service to our clients.
 The global business and regulatory environments in which we operate remain complex, uncertain and subject to change. We are subject to various laws, rules and regulations globally that impose restrictions, limitations, registration, reporting and disclosure requirements on our business, and add complexity to our global compliance operations. Incorporated herein by reference is certain financial information about our segment and geographic areas contained in Note 18 – Segment and Geographic Information in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report.

 Company History
 Since 1947, the Company and its predecessors have been engaged in the investment management and related services business. Franklin was incorporated in the State of Delaware in November 1969, and originated our mutual fund business with the initial Franklin family of funds, known for its fixed income funds and growth and value-oriented equity funds. Over the years, we have expanded and developed our business to meet evolving investor needs, in part, by acquiring companies engaged in investment management and related services. We have added, among others: (i) the Templeton global investment firm in 1992, (ii) the Franklin Mutual Series investment firm in 1996, (iii) the Franklin Bissett Canadian investment firm in 2000, (iv) the Fiduciary Trust International investment and trust services firm in 2001, (v) the Benefit Street Partners alternative credit management firm in 2019, (vi) the Athena Capital Advisors investment and wealth management firm in March 2020, (vii) The Pennsylvania Trust Company investment and trust services firm in May 2020, (viii) the Legg Mason global investment firm in July 2020, (ix) the O'Shaughnessy Asset Management quantitative asset management firm in December 2021, (x) the Lexington Partners global alternatives investment firm in April 2022, (xi) the Alcentra alternative credit investment firm in November 2022, (xii) the Putnam global investment firm in January 2024, and (xiii) the Apera asset management firm in October 2025.

 OUR BUSINESS STRUCTURE
 Through our subsidiaries, we are committed to helping investors navigate global markets, as well as continuing to evolve and build on our strengths to meet the needs of our clients. We generally derive our revenues and income from providing investment management and related services to our products and the products we sub-advise. Our investment management fees, which represent a majority of our revenues, depend to a large extent on the level and relative mix of our AUM and the types of services provided, which are subject to change.

 Our business is conducted through our subsidiaries, including our specialist investment managers. Our specialist investment managers include subsidiaries registered with the United States ("U.S.") Securities and Exchange Commission (the "SEC") as investment advisers under the Investment Advisers Act of 1940 (the "Advisers Act"), as well as subsidiaries registered as investment adviser equivalents in jurisdictions including Australia, Brazil, Canada, China, Commonwealth of The Bahamas, Hong Kong, Ireland, India, Japan, Luxembourg, Malaysia, Mexico, Saudi Arabia, Singapore, Switzerland, South Korea, the United Arab Emirates, the United Kingdom ("U.K.") and Uzbekistan.
 Our AUM by Asset Class and Product Type
 We offer a broad product mix under our equity, fixed income, alternative, multi-asset and cash management asset classes. Our equity capabilities include value, deep value, core value, blend, growth and growth at a reasonable price, convertibles, sector, Shariah, smart beta and thematic investments. Our fixed income capabilities include government, municipals, corporate credit, bank loans, securitized, multi-sector, and other investments. Our alternative capabilities include private debt, hedge funds, private equity, real estate and infrastructure investments. Our multi-asset capabilities include income, real return, balanced/hybrid, total return, target date/risk, absolute return, tactical asset allocation and managed volatility investments.
 We believe, despite market risks, that we have a competitive advantage as a result of the economic and geographic diversity of our products available to our clients. Our U.S. funds include U.S. mutual funds, closed-end funds, ETFs, private funds, sub-advised funds and other products (including products we sub-advise and those sub-advised by third parties). Our non-U.S. funds include a variety of cross-border funds principally domiciled in Luxembourg or Ireland, registered for sale to non-U.S. investors in certain other countries, and international locally domiciled funds and products for the particular local market. Our institutional separate account services are provided to various institutions globally for which we serve as an investment adviser. Our retail separately managed accounts, commonly known as managed accounts or wrap programs, are sponsored by various financial institutions. We also offer and serve as investment adviser to various other products.
 Our fees for providing investment management services are generally based on a percentage of AUM in the accounts that we advise, and vary based on the asset classes of the accounts, the types of services that we provide, and the market for those services.
 AUM by asset class and product type was as follows:

 U.S. Funds
 Non-U.S. Funds
 Institutional Separate Accounts
 Retail Separately Managed Accounts
 Other
 Total
 Percentage
of Total
AUM

 $
 391.8
 $
 120.7
 $
 48.0
 $
 107.4
 $
 18.3
 $
 686.2
 %

 159.2
 62.4
 162.5
 31.6
 23.0
 438.7
 %

 152.7
 88.7
 21.7
 0.6
 0.2
 263.9
 %

 101.4
 14.1
 4.8
 24.9
 48.7
 193.9
 %

 Cash Management

 46.3
 31.3
 0.9
 —
 —
 78.5
 %

 Total
 $
 851.4
 $
 317.2
 $
 237.9
 $
 164.5
 $
 90.2
 $
 %

 See "Assets under Management" under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of Part II of this Annual Report for additional information about our AUM. Broadly speaking, other than AUM changes due to acquisitions, changes in our AUM depend primarily upon two factors: (i) the increase or decrease in the market value of the securities and instruments held in the portfolio of investments, and (ii) the level and direction of net flows. Changing market conditions, reputational harm and the evolving needs of our clients may cause asset volatility and a shift in our asset mix, which may result in an increase or decrease in our revenues and income.
 Our Investment Management Related Services and Products
 Our specialist investment managers offer diverse perspectives and specialized expertise across asset classes and strategies. Across our business, our specialist investment managers generally focus on a portion of the investment management industry in terms of the types of assets managed and each may differ in the types of products and services offered, the investment styles utilized, and the types and geographic locations of its clients. Each typically markets its products and services under its own brand name, with certain distribution functions provided by our corporate distribution

 subsidiaries where applicable. We have in place revenue sharing arrangements with certain of our specialist investment managers.
 Our specialist investment managers include: Benefit Street Partners, Brandywine Global, Clarion Partners, ClearBridge Investments, Fiduciary Trust International, Franklin Equity Group, Franklin Income Investors, Franklin Mutual Series, Franklin Templeton Fixed Income, Franklin Templeton Investment Solutions, Lexington Partners, O'Shaughnessy Asset Management, Putnam Investments, Royce Investment Partners, Templeton Global Investments, Templeton Global Macro and Western Asset Management.
 Through our specialist investment managers, our investment products are offered globally to retail, institutional and high-net-worth clients, which may include, among others, individual investors, institutional investors, sovereign wealth funds, defined benefit and contribution plans, endowments and charitable foundations, healthcare systems and insurance companies. Our investment products include mutual funds, closed-end funds, collective investment trusts, interval funds, private funds, institutional separate accounts, retail separately managed accounts, and other products. Our products and capabilities are designed to accommodate a variety of investment goals and preferences, from capital appreciation to capital preservation, as well as other investor preferences.
 We are committed to partnering closely with our clients to understand their challenges and aspirations, and drawing on our investment capabilities and resources to offer and/or design the right investment solutions for them. We distribute and market globally our different capabilities under our brand names through various subsidiaries and multiple points of access, including directly to investors and through financial intermediaries. We primarily engage new institutional business through our relationships with pension, defined contribution and management consultants, direct sales efforts and additional mandates from our existing client relationships, as well as from our responses to requests for proposals. We also market and distribute our products through various subsidiaries to institutional investors with separate accounts.
 Our specialist investment managers provide investment management services pursuant to agreements with each of our investment products and/or clients, including products for which we provide sub-advisory services. Our investment management services include fundamental investment research and valuation analyses, including original economic, political, industry and company research, and analyses of suppliers, customers and competitors. Our management fees vary with the types of services that we provide, and fees may at times be waived or voluntarily reduced by the parties, among other things.

 Our Funds
 Our specialist investment managers manage a fund's portfolio of securities in accordance with the fund's stated objectives. To support the funds' operations, our subsidiaries either provide or arrange for the investment and other management, shareholder servicing and administrative services required by the funds. We outsource various administration, technology, transfer agency and other services for our funds to third-party providers. An investor may purchase shares of a mutual fund directly from us or through a broker-dealer, financial adviser, bank or other similar financial intermediary that provides investment advice to the investor, or an investor may purchase shares of a closed-end fund or ETF on the stock exchange where the fund is traded. Financial intermediaries may earn fees and commissions and receive other compensation with respect to fund shares sold to investors.
 The applicable board of directors or trustees of our funds and our management personnel periodically review the investment management fee structures for the funds in light of fund performance, the level and range of services provided, industry conditions and other relevant factors. For our U.S. mutual funds, most of our investment management agreements between our subsidiaries and funds must be renewed each year, and must be approved annually by a vote of each fund's board of directors or trustees as a whole and separately by a majority of the independent fund directors or trustees under the Investment Company Act of 1940 (the "Investment Company Act"), or by a vote of the holders of a majority of the fund's outstanding voting securities, and such agreements generally may be terminated by either party without penalty after prior written notice. Our non-U.S. mutual funds, private funds, institutional and high-net-worth separate accounts, and the products for which we provide sub-advisory services, are typically subject to various termination rights and/or renewal provisions, which often provide for termination upon relatively short notice with little or no penalty.
 Retail Separately Managed Account Programs
 Certain of our specialist investment managers provide investment management services to retail separately managed account programs sponsored by various financial institutions. These programs typically allow securities brokers or other financial intermediaries to offer their clients the opportunity to choose from a number of investment management services

 pursuing different investment strategies provided by one or more investment managers, and generally charge an all-inclusive fee that can cover asset management, asset allocation and custodial and administrative services.
 Alternative Products and Strategies
 Certain of our specialist investment managers manage alternative products and investment strategies which provide our clients with alternatives to traditional equity and fixed income products and services. Our alternative products include private credit funds and structured products, business development companies, hedge funds (such as funds of funds and custom advisory solutions), private equity funds, secondary private equity funds, venture capital funds and real estate funds. These products employ various investment strategies and approaches, including loan origination, collateralized loan obligations, high-yield credit, hedge fund advisory, private equity and infrastructure transactions in emerging markets, global macro, consumer loans, direct real estate investments, and custom-tailored investment programs.
 High-Net-Worth Investment Management, Trust and Custody Services
 Through our Fiduciary Trust International related subsidiaries, we provide investment management and related services to, among others, high-net-worth individuals and families, family offices, foundations and institutional clients. Fiduciary Trust International offers investment management and advisory services across different investment styles and asset classes. The majority of these client assets are actively managed by individual portfolio managers, while a significant number of clients also seek multi-manager, multi-asset class solutions. We also may provide separately managed accounts, private funds, and trust, custody and related services, including administration, performance measurement, estate planning and tax planning.
 Sales and Distribution
 Our global distribution group is responsible for sales, marketing and business development and maintains a regional distribution model, with regional teams responsible for driving initiatives in collaboration with global teams. Our groups collaborate to meet the needs of our advisors, clients and investors. There are many sales channels across each region, which may include retail, institutional, private wealth, retirement, insurance, and other specialty sales. Our global footprint and breadth of investment capabilities provide the opportunity for us to work with global financial institutions to add value through and beyond investing, including by providing thought leadership and building business relationships and global economic partnerships.
 In addition, certain of our specialist investment managers have their own sales and marketing teams that distribute their products and services, primarily to institutional investors, both directly and through consultants. Consultants play a large role in institutional investment management by helping clients select and retain investment managers. Institutional investment management clients and their consultants tend to be highly sophisticated and investment performance driven.
 Our sales and distribution capabilities and related efforts are critical components of our business and may be impacted by global distribution trends and changes within the financial services industry. In the U.S., our distribution subsidiaries generally serve as the principal underwriters and distributors of shares of most of our mutual funds. Outside the U.S., certain of our non-U.S. subsidiaries provide sales, distribution and marketing services to our non-U.S. mutual funds. Some of our non-U.S. mutual funds, particularly our Luxembourg and Irish domiciled funds, are distributed globally on a cross-border basis, while others are distributed exclusively in local markets.
 We earn sales and distribution fees primarily by distributing our mutual funds pursuant to distribution agreements with the funds. Under our distribution agreements with our U.S. mutual funds, we offer and sell the fund shares on a continuous basis and pay certain costs associated with selling, marketing and distributing the fund shares, including the costs of developing and producing sales literature, shareholder reports and prospectuses. Our sales and distribution fees primarily consist of upfront sales commissions and ongoing distribution fees, which generally will change with the overall level of gross sales, the size of individual transactions, and the relative mix of sales between different asset classes and types of investors.

 The majority of our U.S. mutual funds, with the exception of certain money market funds and certain other funds specifically designed for purchase through separately managed account programs, have adopted distribution plans under Rule 12b-1 (the "Rule 12b-1 Plans") promulgated under the Investment Company Act. The Rule 12b-1 Plans permit the funds to pay us for marketing, marketing support, advertising, printing and sales promotion services relating to the distribution of their shares, subject to the Rule 12b-1 Plans' limitations on amounts based on daily average AUM. Similar arrangements exist for the distribution of non-U.S. mutual funds. The Rule 12b-1 Plans are established for one-year terms and must be approved annually by a vote of each fund's board of directors or trustees as a whole and separately by a majority of the independent fund directors or trustees under the Investment Company Act, and such plans are subject to termination at any time by a majority vote of the independent fund directors or trustees or by the fund's shareholders.
 We pay the sales and distribution fees earned as revenues to the financial advisers and other intermediaries that sell our funds on our behalf. The distribution agreements with our U.S. mutual funds generally provide for us to pay commission expenses for sales of fund shares to qualifying broker-dealers and other independent financial intermediaries. These financial intermediaries receive various sales commissions and other fees for services in matching investors with funds whose asset classes match such investors' goals and risk profiles. The intermediaries also may receive fees for their assistance in explaining the operations of the funds, and for reporting and various other distribution services. Other compensation may be offered to the extent not prohibited by federal or state laws or any self-regulatory agency, such as the Financial Industry Regulatory Authority ("FINRA"), applicable to our business. We are heavily dependent upon these third-party distribution and sales channels and business relationships. There is increasing competition for access to these channels, which has caused our distribution costs to rise and could cause further increases in the future as competition continues and service expectations increase.
 Similar arrangements exist with the distribution of our non-U.S. mutual funds where, generally, our subsidiary that distributes the funds receives maintenance fees from the funds and pays certain fees to financial advisers, banks and other intermediaries.
 Shareholder Servicing
 We perform our shareholder servicing services directly or through third parties. Substantially all shareholder servicing fees are earned from our funds for providing transfer agency services, which include providing shareholder statements, transaction processing, client service and tax reporting. Shareholder servicing fees are determined based on a contractual margin, or a percentage of AUM and either the number of transactions in shareholder accounts or the number of shareholder accounts. We outsource various transfer agency and other services for our funds to third-party providers who serve as a sub-agent or delegate, depending on the jurisdiction. Our fees and expenses are routinely benchmarked against applicable industry standards.

 COMPETITION
 The financial services industry is a highly competitive global environment. Competition is based on various factors, including, among others, business reputation, investment performance, product mix and offerings, service quality and innovation, distribution relationships, and fees charged. We face strong competition from numerous investment management companies, securities brokerage and investment banking firms, insurance companies, banks, hedge fund firms and other financial management institutions, which offer a wide range of financial and investment management services and products to the same retail, institutional and high-net-worth investors and accounts that we are seeking to attract. We offer a broad product mix that meets a variety of investment goals and needs for different investors, and we may periodically introduce new products to provide investors with additional investment options.
 We primarily derive our fund sales through third-party broker-dealers, banks, investment advisers and other financial intermediaries. Because we rely on third-party distribution and sales channels to sell our products, we do not control the ultimate investment recommendations given by them to clients. Such financial intermediaries may recommend competing products.
 Due to our international presence and varied product mix, it is difficult to assess our market position relative to other investment managers on a worldwide basis, but we believe that we are one of the more widely diversified investment managers based in the U.S. We believe that our equity, fixed income, alternative and multi-asset asset mix, coupled with our global presence, will serve our competitive needs well over the long term. We continue to focus on the long-term performance of our investment products, service to clients and extensive marketing activities through our strong broker-dealer and other financial institution distribution network as well as with high-net-worth and institutional clients.

 The establishment of new investment management firms and continuous development of investment products increases the competition that we face. Many of our competitors have long-standing and established relationships with broker-dealers, investment advisers and their clients, and some have affiliated brokerage businesses. Others have focused on, offer and market specific product lines that provide strong competition to certain of our asset classes. In addition, consolidation in the financial services industry has created stronger competitors, some with greater financial resources and broader distribution channels than our own.

 REGULATION
 General
 We are subject to extensive regulation. Virtually all aspects of our business are subject to various U.S. federal and state, and/or international regulation and supervision. Our regulators have broad authority with respect to the regulation of investment management and other financial services, including among other things, the authority to grant or cancel required licenses or registrations, impose net capital and other financial or operational requirements on us, and other enforcement powers described below. The regulations to which we are subject continue to change and evolve over time. Consequently, there is uncertainty associated with the regulatory environments in which we operate. The rules and regulations applicable to investment management organizations are very detailed and technical. Accordingly, the discussion below is general in nature and does not purport to be complete.
 With our global operations, certain of our subsidiaries are registered with or licensed by various U.S. and/or non-U.S. regulators, and our funds are subject to various U.S. and/or non-U.S. laws. In particular, we are subject to various securities, compliance, corporate governance, disclosure, privacy, anti-bribery and anti-corruption, anti-money laundering, anti-terrorist financing, and economic, trade and sanctions laws and regulations, both domestically and internationally, as well as to various cross-border rules and regulations, such as the anti-bribery and anti-corruption rules under the Foreign Corrupt Practices Act of 1977 and the data protection rules under the General Data Protection Regulation ("GDPR") of the European Union ("EU"). We are subject to sanctions programs administered by the Office of Foreign Assets Control of the U.S. Department of Treasury ("USDT"), as well as sanctions programs adopted and administered by non-U.S. jurisdictions where our services and products are offered. Our subsidiaries with custody of client assets or accounts are also subject to the applicable laws and regulations of U.S. states and non-U.S. jurisdictions regarding the reporting and escheatment of unclaimed or abandoned property, and applicable banking, trust company and/or fiduciary related regulations. We also must comply with complex and changing tax regimes in the jurisdictions where we operate our business.
 Failure to comply with applicable U.S. and non-U.S. laws, regulations, rules, codes, notices, directives, guidelines, orders, circulars and/or conditions in the various jurisdictions where we operate could result in a wide range of disciplinary actions against us, our subsidiaries and/or our business. Breaches of applicable laws and rules could result in regulatory enforcement, civil liability, criminal liability and/or the imposition of a range of sanctions or orders against us, including, as applicable, monetary damages, injunctions, disgorgements, fines, penalties, cease and desist orders, censures, reprimands, and the revocation, cancellation, suspension or restriction of licenses, registration status or approvals held by us or our business in a jurisdiction or market. In addition, a public regulatory issue can have a negative impact on our reputation, and as a result have indirect impacts on our business or growth.
 See Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of Part II of this Annual Report, for financial information about our business.
 U.S. Regulation
 U.S. Regulatory Framework. As a U.S. reporting company, we are subject to U.S. federal securities laws, state securities and corporate laws, state escheatment laws and regulations, and the rules and regulations of certain U.S. regulatory and self-regulatory organizations, such as the SEC and the NYSE. In particular, we are subject to various securities, compliance, corporate governance and disclosure rules adopted by the SEC. We are also subject to various other U.S. federal and state laws, including those affecting corporate governance and disclosure, such as the Securities Act of 1933, the Securities Exchange Act of 1934 ("Exchange Act"), the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Sarbanes-Oxley Act of 2002 and the USA PATRIOT Act of 2001. As a NYSE-listed company, we are also subject to NYSE listing and disclosure requirements.

 As a global investment management organization, certain of our subsidiaries are also subject to the rules and regulations of various U.S. regulatory and self-regulatory organizations, including the SEC, FINRA, the U.S. Commodity Futures Trading Commission ("CFTC"), the National Futures Association, the U.S. Department of Justice ("DOJ"), the U.S. Department of Labor ("DOL"), and the USDT. Our non-U.S. operations also may be subject to regulation by U.S. regulators, including the SEC, the CFTC and the DOJ.
 Certain of our subsidiaries are registered with the SEC under the Advisers Act and/or with the CFTC, and many of our funds are registered with the SEC under the Investment Company Act. These registrations, licenses and authorizations impose numerous obligations, as well as detailed operational requirements, on such subsidiaries and funds. The Advisers Act imposes numerous obligations on our registered investment adviser subsidiaries, including record keeping, operating and marketing requirements, disclosure obligations and prohibitions against fraudulent activities. The Investment Company Act similarly imposes extensive obligations on the registered investment companies advised by our subsidiaries.
 U.S. Regulatory Reforms. Over the years, the U.S. federal corporate governance and securities laws have been augmented substantially and made significantly more complex by various legislation. As we continue to address our legal and regulatory requirements or focus on meeting new or expanded requirements, we may need to expend a substantial amount of additional time, costs and resources. Regulatory reforms may continue to add further complexity to our business and operations and could require us to alter our investment management services and related activities, which could be costly, impede our growth and adversely impact our AUM, revenues and income. Such reforms could significantly increase our reporting, disclosure and compliance obligations. Certain key regulatory reforms in the U.S. that impact or relate to our business, and may cause, or continue to cause, us to incur additional obligations, include:

 Antitrust Rules and Disclosure. The Federal Trade Commission ("FTC") has approved various rule changes under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR Act") that amend certain premerger reporting and notification rules. The HSR Act and its implementing rules require parties to certain mergers and acquisitions to submit premerger notifications to the FTC and DOJ and observe a waiting period before consummating such transactions. The rules significantly expand the premerger information and documentation required to be submitted in connection with an HSR filing, which could substantially increase our required disclosure and notification expenses and delay transactions.

 Cybersecurity Disclosure. The SEC's amended rules require disclosure regarding cybersecurity risk management, strategy, governance and incident reporting by public companies. The rules require public companies to (i) disclose, on a current basis, any cybersecurity incident it deems to be material within four business days on a Form 8-K; (ii) describe, on an annual basis, the company's processes, if any, for the assessment, identification and management of material risks from cybersecurity threats, as well as whether any risks from cybersecurity threats have materially affected or are reasonably likely to materially affect their business strategy, results of operations or financial condition; and (iii) describe, on an annual basis, the board's oversight of risks from cybersecurity threats and management's role in assessing and managing those risks. The rules require ongoing evaluation and analysis of our applicable processes and procedures, including regarding cyber incident response plans and procedures, disclosure analysis framework, risk management processes, and board oversight structure.
 Sustainability. Sustainable investing and related environmental, social and governance ("ESG") topics continue to be the focus of increased regulatory and legal scrutiny across jurisdictions. In the U.S., the SEC adopted, but subsequently stayed the implementation of, climate disclosure rules to require public issuers to include enhanced disclosure and financial metrics regarding corporate climate-related information in their periodic reports and registration statements. These rules remain stayed and subject to ongoing legal challenges. In addition, state laws and regulations regarding these topics continue to evolve. For example, in October 2023, California enacted a new climate accountability package pursuant to its Climate Corporate Data Accountability Act that requires annual disclosure of certain greenhouse gas emissions and Climate-Related Financial Risk Act that requires biennial disclosure of certain climate-related financial risks and mitigation measures, each beginning in 2026, subject to applicable implementing regulations that the California Air Resources Board is expected to finalize in late 2025 that may impact final scope and compliance timing. Globally, the independent International Sustainability Standards Board and other applicable sustainability disclosure standards continue to impact how national regulators and governance bodies approach these and related topics.
 Privacy and Data Protection. There continues to be an increased regulatory and enforcement focus with respect to the protection of individuals' privacy and personal data around the world, and the ongoing need to secure and ensure only appropriate collection and use of sensitive customer, personnel, and others' personal data. A majority of the jurisdictions where we operate are covered, or we expect will be covered, by stringent privacy and data protection laws and regulations. As the regulatory focus on privacy continues to intensify and laws and regulations concerning the management of personal

 data continue to expand, risks related to the handling of privacy obligations and personal data collection across our business will increase. For example, in addition to international data protection and privacy laws and regulations like the EU's GDPR, we are, and expect to continue to be, subject to and affected by existing, new and evolving country, federal and state laws, regulations and guidance around the world impacting consumer and personnel privacy, including various U.S. state consumer privacy laws that provide for enhanced consumer protections for their residents and impose requirements for the handling, disclosure and deletion of personal information of their residents.
 Systemically Important Financial Institutions. The mandate of the Financial Stability Oversight Council ("FSOC") is to identify and respond to threats to U.S. financial stability. Similarly, the U.S. and other members of the G-20 group of nations have empowered the Financial Stability Board ("FSB") to identify and respond, in a coordinated manner, to threats to global financial stability. The FSOC may designate certain non-bank financial companies as systemically important financial institutions ("SIFIs"), which are subject to supervision and regulation by the Board of Governors of the Federal Reserve System. The FSB may designate certain non-bank financial companies as global systemically important financial institutions ("G-SIFIs"). To the extent that we or any of our funds are designated as a SIFI or G-SIFI, such designations would add additional supervision, review, monitoring and/or regulation resulting in increased scrutiny and oversight that could impact our business.
 U.S. DOL Reforms. The DOL's 2024 amended fiduciary rule broadening the definition of who is considered an "investment advice fiduciary" to a retirement investor, and adding significant restrictions and requirements for the use of prohibited transaction exemptions typically relied upon by investment firms such as ours, remains subject to applicable legal challenges. Under the new rule, a financial services provider that provides one-time advice to a retirement investor may become subject to the Employee Retirement Income Security Act (ERISA) fiduciary standard. In addition to the 2024 fiduciary rule, the DOL amended the Qualified Professional Asset Manager (QPAM) exemption as of June 2024, which many investment firms have relied upon when providing services to and engaging in transactions on behalf of applicable retirement plans, individual retirement accounts (IRAs) and/or certain commingled investment vehicles that have retirement plan investors. The QPAM amendment makes material changes and imposes additional conditions and affirmative requirements for the ongoing use of such exemption. On August 7, 2025, President Trump issued an Executive Order to facilitate the ability of participants in 401(k) and other defined contribution plans to obtain exposure to alternative assets, including private equity, real estate, and digital assets.
 Private Fund Adviser Reforms. In February 2024, the SEC and CFTC jointly adopted amendments to Form PF, which is the confidential reporting form that certain investment advisers to private funds file to provide confidential information to the agencies and the FSOC. The amendments require all private fund advisers to report additional information about themselves and the funds they advise, including assets under management, withdrawal and redemption rights, gross and net asset value, inflows and outflows, borrowings and types of creditors, beneficial ownership, and fund performance. Hedge fund advisers are subject to additional reporting requirements with respect to the funds they advise, including information about investment strategies, counterparty exposures, and trading and clearing mechanisms. Large hedge fund advisers that report on qualifying hedge fund assets are required to report more detailed information about investment exposures, borrowing and counterparty exposure, market factor effects, currency exposure, turnover, country and industry exposure, central clearing counterparty reporting, risk metrics, investment performance, portfolio liquidity, and financing and investor liquidity. The compliance date for the amended reporting requirements has been extended, most recently until October 2026. The SEC has indicated that, during the further extension period, it will continue its substantive review of the amendments and Form PF more generally.
 Fund Names Rule Reforms. In September 2023, the SEC adopted amendments to the fund "Names Rule" impacting regulated investment funds. The Names Rule generally requires a fund to invest at least 80% of the value of its assets in the particular type of investments or industry suggested by the fund's name. The amendments expand the applicability of the Names Rule and impacted funds may need to modify their names or alter their investment strategies to comply with the amendments, potentially impacting their portfolios. Funds with names that suggest a focus on investments that have particular characteristics, such as "growth," "value" or thematic terms such as "ESG," would be required to adopt a policy to invest at least 80% of the fund's assets in those investments and would be subject to enhanced disclosure and reporting requirements. The SEC did not clearly define these terms and instead is allowing fund managers the flexibility to create their own reasonable definitions. As extended in April 2025, compliance with the rules is required for larger fund complexes by June 2026.
 Digital Assets. Regulatory attention to digital assets—including cryptocurrencies, stablecoins, tokenized securities and other distributed ledger instruments—has continued to intensify across jurisdictions. Current U.S. leadership has

 shown greater support for financial technology innovation and activity. In July 2025, the U.S. enacted legislation governing the issuance and regulatory oversight of payment stablecoins. Congress is considering legislation that would allocate primary oversight of most other digital asset activities between the SEC and CFTC. Also in July 2025, the President's Working Group on Digital Asset Markets issued a report that includes numerous legislative and regulatory recommendations. The SEC, CFTC, and other agencies have begun implementing these recommendations. Internationally, the EU's Markets in Crypto-Assets Regulation became fully applicable in late 2024, and the United Kingdom, Singapore, Hong Kong and Japan have introduced or strengthened licensing, prudential and consumer-protection rules for crypto-asset service providers. Although the expanding regulatory framework raises legal, compliance and operational challenges for firms, the anticipated clarity and predictability around permissible digital asset activities is broadly positive for the market and its participants.
 U.S. and Global Tax Compliance. Our business may be directly or indirectly affected by tax legislation and regulation, or the modification of existing tax laws, by applicable tax and other governmental authorities. The Organization for Economic Co-operation and Development, an intergovernmental organization, has focused on addressing the tax challenges of the digitalization of the economy, which may further impact multinational businesses by allocating a greater share of taxing rights to countries where consumers are located regardless of the current physical presence of a business, and by implementing a global minimum tax. We will continue to monitor developments regarding such matters and any significant impacts on our effective tax rate.
 Non-U.S. Regulation
 Our operations outside the U.S. are subject to the laws and regulations of various non-U.S. jurisdictions and non-U.S. regulatory agencies and bodies. Our international operations are subject to regulatory systems in various jurisdictions, comparable to those covering our operations in the U.S.
 Europe. In Luxembourg, the Commission de Surveillance du Secteur Financier ("CSSF") regulates our substantial activities in Luxembourg, including our subsidiary Franklin Templeton International Services S. r.l. ("FTIS Lux"). FTIS Lux is licensed as a management company for both the Undertakings for Collective Investment in Transferable Securities Directive ("UCITS") and alternative investment funds ("AIFs") and, as such, it manages our Luxembourg-domiciled UCITS and our EU-domiciled AIFs. FTIS Lux's license also covers certain investment services, such as discretionary portfolio management, investment advice and reception and transmission of orders in relation to financial instruments. The CSSF's rules include capital resource, governance and risk management requirements, business conduct rules, remuneration rules and oversight of systems and controls.
 Our international funds include two broad ranges of cross-border UCITS that are domiciled in Luxembourg and Ireland, and thereby subject to regulation by the CSSF and the Central Bank of Ireland. Both UCITS are also registered for public sale in many countries around the world, both in the EU and beyond, and thus are also subject to the laws of, and certain supervision by, the governmental authorities of those countries.
 In the U.K., the Financial Conduct Authority (the "FCA") regulates certain of our subsidiaries. Authorization by the FCA is required to conduct any financial services-related business in the U.K. pursuant to the Financial Services and Markets Act 2000. The FCA's rules under that act govern a firm's capital resources requirements, senior management arrangements, business conduct, interaction with clients, and systems and controls. In 2024, we updated the applicable product, marketing and other materials of our U.K. funds in line with the FCA's new Sustainability Disclosure Requirements and we are preparing the first annual disclosure for funds with sustainability characteristics for compliance with the December 2025 deadline. We offer a significant number of EU UCITS to U.K. retail investors which have registered under the U.K.'s new Offshore Funds Regime to continue such offerings. We await a further consultation from the U.K. Treasury as to how such funds may in the future also be covered by the FCA's Sustainability Disclosure Requirements.

 In addition, the EU Markets in Financial Instruments Directive, as revised and expanded in 2018 ("MiFID II"), regulates the provision of investment services and conduct of investment activities throughout the European Economic Area ("EEA"). As revised, MiFID II sets out detailed requirements, governing the organization and business conduct of investment firms and regulated markets, and includes pre- and post-trade transparency requirements for equity markets and extensive transaction reporting requirements. It also includes an expansion of the types of instruments subject to these requirements, such as bonds, structured products and derivatives, and changes to business conduct requirements, including selling practices, intermediary inducements and client categorization. MiFID II also includes a ban on commission and other payments ("inducements") to independent advisers and discretionary managers, which has changed the commercial relationships between fund providers and distributors. Arrangements with non-independent advisers have also been affected, as narrower rules around the requirement that any commission reflect an enhancement of the service to customers came into effect, along with a prescriptive list of permissible non-monetary benefits. The interpretation of the inducements rules has also resulted in major changes to how fund managers finance investment research with many firms, including ours, though changes to those rules are due to take effect in 2026 and the impact of such changes remains to be seen.
 The European Market Infrastructure Regulation sets out rules in relation to the central clearing of specified derivatives. Mutual recognition of central counterparties has been achieved between the EU regulatory authorities and other important jurisdictions including the U.S. In addition, there are rules relating to margin requirements for uncleared over-the-counter derivatives. Future regulatory policy reviews will decide whether these rules are extended to other types of derivative instruments, which could increase operational costs for our business and transactional costs for our clients.
 The EU's Alternative Investment Fund Managers Directive ("AIFMD") regulates managers of, and service providers to, AIFs that are domiciled and offered in the EU and that are not authorized as retail funds under UCITS. The AIFMD also regulates the marketing within the EU of all AIFs, including those domiciled outside the EU. Compliance with the AIFMD's requirements may restrict AIF marketing and imposes compliance obligations in the form of remuneration policies, capital requirements, reporting requirements, leverage oversight, valuation, stakes in EU companies, the domicile, duties and liability of custodians and liquidity management.
 The EU regulation on packaged retail investment and insurance products ("PRIIPs") imposed new pre-contractual disclosure requirements under the form of a Key Information Document ("KID") for the benefit of retail investors when they are considering the purchase of packaged retail investment products or insurance-based products.
 The EU's Sustainable Finance Disclosure Regulation ("SFDR") imposes mandatory ESG disclosure obligations on asset managers and other financial markets participants. SFDR requires all covered firms to disclose how financial products integrate sustainability risks in the investment process, including whether they consider adverse sustainability impacts, and, for those products promoting sustainable objectives, the provision of sustainability-related information. Related amendments to applicable legislation require that all covered investment managers must consider in their investment process any ESG risks which are likely to have a material impact on the value of the investment and require investment advisers to inquire as to the investor's desire for ESG-focused products in their portfolio when assessing suitability. The availability of such sustainability disclosures may impact the investment decisions of European investors. The European Commission is currently reviewing SFDR and expected to propose major changes before the end of 2025.

 The EU's Corporate Sustainability Due Diligence Directive ("CSDD") will impose due diligence obligations requiring companies to identify, and to prevent or at least mitigate, adverse impacts on human rights and the environment across their value chain, including by their subsidiaries, supply chain partners and clients. Obligations would be enforced through administrative sanctions and civil liability, with a defense of having exercised reasonable due diligence. The CSDD remains subject to further secondary rulemaking and guidance around implementation. While CSDD does not currently apply to investment funds, the European Commission is required to consider the merits of potentially extending the requirements to funds. As investors in the public markets do not have the contractual relationship with issuers to compel them to provide the information required by CSDD, the imposition of CSDD to funds could prove problematic for the industry. With a fresh political focus on encouraging economic growth and regulatory simplification, a fundamental review of both CSDD and the EU's Corporate Sustainability Reporting Directive ("CSRD") began early in 2025 and continues, and the implementation deadlines for both CSDD and CSRD have been pushed back to allow for resolution of that process.
 Australia. In Australia, our subsidiaries are subject to various Australian federal and state laws and are regulated by the Australian Securities and Investments Commission ("ASIC"). ASIC regulates companies, financial markets and financial services in Australia. ASIC imposes certain conditions on licensed financial services organizations that apply to our subsidiaries, including requirements relating to capital resources, operational capability and controls.

 Canada. In Canada, our subsidiaries are subject to provincial and territorial laws and are registered with and regulated by provincial and territorial securities regulatory authorities. The mandate of Canadian securities regulatory authorities is generally to protect investors; to foster fair, efficient and competitive capital markets; to foster capital formation; and to contribute to the stability of the financial system and the reduction of systemic risk. Securities regulatory authorities impose certain requirements on registrants, including a standard of conduct, capital and insurance, record keeping, regulatory financial reporting, conflict of interest management, compliance systems and security holder reporting. In addition, one of our Canadian subsidiaries is a federally licensed trust company subject to regulation and supervision by the Office of the Superintendent of Financial Institutions and another subsidiary is a member of and regulated by the Canadian Investment Regulatory Organization. These regulatory bodies have similar requirements to those of the securities regulatory authorities with a view to ensuring the capital adequacy and sound business practices of the subsidiaries and the appropriate treatment of their clients.
 Cayman Islands. In the Cayman Islands, the Cayman Islands Monetary Authority ("CIMA") is responsible for the regulation and supervision of financial services, the monitoring of compliance with anti-money laundering regulations, and the issuance of statements of principle and guidance. In February 2020, the Cayman Islands enacted the Private Funds Law 2020 (the "Private Funds Law"), which requires private funds that engage in business in or from the Cayman Islands to register with CIMA, unless an exemption applies. The Private Funds Law applies to any Cayman Islands closed-end fund. Open-end funds such as hedge funds continue to be regulated by the Mutual Funds Law in the Cayman Islands. The registration requirements applicable to our private funds domiciled in the Cayman Islands have posed, and may continue to pose, additional compliance costs and burdens on our business.
 Hong Kong. In Hong Kong, our applicable subsidiaries are subject to the Securities and Futures Ordinance ("SFO") and its subsidiary legislation, which governs the securities and futures markets and regulates, among others, offers of investments to the public and provides for the licensing of dealing in securities and asset management activities and intermediaries. This legislation is administered by the Securities and Futures Commission ("SFC"). The SFC is also empowered under the SFO to establish standards for compliance as well as codes and guidelines. Our subsidiaries and employees conducting any of the regulated activities specified in the SFO are required to be licensed with the SFC, and are subject to the rules, codes and guidelines issued by the SFC from time to time.
 India. The Securities and Exchange Board of India, Reserve Bank of India, the International Financial Services Centres Authority, the Ministry of Corporate Affairs and the Department of Industrial Policy and Promotion are the major regulatory authorities that are capable of issuing directions of a binding nature to our subsidiaries in India.
 Japan. In Japan, our subsidiaries are subject to the Financial Instruments and Exchange Act and the Act on Investment Trusts and Investment Corporations. These laws are administered and enforced by the Japanese Financial Services Agency, which establishes standards for compliance, including capital adequacy and financial soundness requirements, customer protection requirements, and business conduct rules.
 Singapore. In Singapore, our subsidiaries are subject to, among others, the Securities and Futures Act ("SFA"), the Financial Advisers Act ("FAA") and the subsidiary legislation promulgated pursuant to these Acts, which are administered by the Monetary Authority of Singapore ("MAS"). Our asset management subsidiaries and their employees conducting regulated activities specified in the SFA and/or the FAA are required to be licensed with the MAS.
 Other Non-U.S. Jurisdictions. There are similar legal and regulatory arrangements in effect in many other non-U.S. jurisdictions where our subsidiaries, branches and representative offices, as well as certain joint ventures or companies in which we own minority stakes, are authorized to conduct business. We are also subject to regulation and supervision by, among others, the Securities Commission of The Bahamas, the Comiss o de Valores Mobili rios in Brazil, the China Securities Regulatory Commission and the Financial Supervisory Commission in the People's Republic of China, the Securities Commission in Malaysia, the Comision Nacional Bancaria y de Valores in Mexico, the Romanian Financial Services Authority, the Saudi Capital Market Authority, the Financial Services Commission and the Financial Supervisory Service in South Korea, the Swiss Federal Banking Commission, the Dubai Financial Services Authority in the United Arab Emirates, the National Agency of Perspective Projects in Uzbekistan, and the State Securities Commission of Vietnam.

 INTELLECTUAL PROPERTY
 We have used, registered, and/or applied to register certain trademarks, service marks and trade names to distinguish our sponsored products and services from those of our competitors in the U.S. and in other countries and jurisdictions, including, but not limited to, Alcentra, Apera, Benefit Street Partners, Brandywine Global Investment Management, Canvas, Clarion Partners, ClearBridge Investments, Fiduciary Trust International, Franklin, Franklin Mutual Series, K2, Legg Mason, Lexington Partners, O'Shaughnessy, Putnam, Royce, Templeton and Western Asset Management Company. Our trademarks, service marks and trade names are important to us and, accordingly, we enforce our trademark, service mark and trade name rights. The Franklin Templeton brand has been, and continues to be, extremely well received both in our industry and with our clients, reflecting the fact that our brand, like our business, is based in part on trust and confidence. If our brand is harmed, our future business prospects may be adversely affected.

 HUMAN CAPITAL RESOURCES
 As of September 30, 2025, we employed approximately 9,800 employees and operated offices in over 30 countries. We consider our relations with our employees to be satisfactory. We depend upon our key personnel to manage our business, including our portfolio managers, investment analysts, sales and management personnel and other professionals as well as our executive officers and business unit heads. Competition for experienced personnel is significant and from time to time we may experience a loss of valuable personnel. The retention of our key investment personnel is material to the management of our business.
 As a global asset manager, we are committed to building and maintaining an inclusive workplace that respects and values all employees, To support our efforts, we have established dedicated resources and a global governance structure. We support our business resource groups, regional executive councils, partnerships, programs and other practices that align with this focus. At an enterprise level, we use employee surveys to understand sentiment and engagement in the organization. We also host live forums for leaders to engage directly with employees to help reinforce our culture of open feedback. Our employees have access to a valuable set of equitable and competitive total rewards, which consists of a mix of monetary and non-monetary rewards designed to recognize their time, talents and results.

 We have developed strategies and initiatives anchored in our core values to prioritize attracting and retaining top talent, promoting an inclusive workplace, driving good decision-making and igniting innovation, all of which we believe are important to our long-term success.

 AVAILABLE INFORMATION
 The SEC maintains a website that contains current and periodic reports, proxy and information statements, and other information regarding issuers, including Franklin, that file electronically with the SEC, at www.sec.gov. Additional information about Franklin's filings can also be obtained through our website at www.franklinresources.com under "Investor Relations." We make available free of charge on our website Franklin's Annual Report on Form 10 K, Quarterly Reports on Form 10 Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Franklin periodically provides other information for investors on its website, such as press releases, presentations and other information about financial performance. The information on our website is not incorporated by reference into, and is not a part of, this Annual Report.

 Item 1A. Risk Factors.
 MARKET AND VOLATILITY RISKS
 Volatility and disruption of our business and financial markets and adverse changes in the global economy may significantly affect our results of operations and put pressure on our financial results.
 We derive substantially all of our operating revenues and income from providing investment management and related services to investors in jurisdictions worldwide through our investment products, which include our funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles. Related services include fund administration, sales and distribution, and shareholder servicing, which we may perform directly or outsource to third parties. The investment management industry continues to experience disruption and challenges, including continued fee pressure, regulatory changes, an increasing and changing role of technology in investment management services, the continuous introduction of new products and services, and the consolidation of financial services firms through mergers and acquisitions. Further, financial markets have experienced and may continue, from time to time, to experience volatility and disruption worldwide. Declines in global economic markets have periodically resulted, and may continue to result, in significant decreases in our AUM, revenues and income, and future declines may further negatively impact our financial results. Such declines have had, and may in the future have, a material adverse impact on our business. We may need to modify our business, strategies or operations and we may be subject to additional constraints or costs in order to compete in a changing global economy and business environment.
 Individual financial, equity, debt and commodity markets may be adversely affected by financial, economic, operational, political, electoral, diplomatic or other changes and/or instabilities that are particular to the country or region in which a market is located, including without limitation local acts of terrorism, economic crises, political protests, war, insurrection or other business, social or political crises. For example, the Ukraine-Russia and Middle East wars and/or conflicts may continue to develop and/or expand globally and significantly impact the global economy and financial markets, which may have an adverse effect on our investment performance and flows in certain products. Global economic conditions, exacerbated by war, terrorism, social, civil or political unrest, natural disasters, public health crises, such as epidemics or pandemics, or financial crises, changes in the equity, debt or commodity marketplaces or market operations, changes in currency exchange rates, interest rates, inflation rates, the yield curve, defaults by trading counterparties, bond defaults, revaluation and bond market liquidity risks, geopolitical risks, the imposition of economic sanctions and other factors that are difficult to predict, affect the mix, market values and levels of our AUM. Changing market conditions could also cause an impairment to the value of our goodwill and other intangible assets.
 The amount and mix of our AUM are subject to significant fluctuations, and a shift in our asset mix toward lower-fee products may negatively impact our revenues and income.
 Fluctuations in the amount and mix of our AUM may be attributable in part to market conditions outside of our control that have had, and in the future could have, a negative impact on our revenues and income. The level of our revenues depends largely on the level and relative mix of AUM. Our investment management fee revenues are based primarily on a percentage of AUM and vary with the types and strategies of our products. Any decrease in the value or amount of our AUM because of market volatility or other factors, such as asset outflows or a decline in the price of securities, in particular market segments or in the securities market generally, negatively impacts our revenues and income. Changing market conditions and investor preferences may cause a shift in our asset mix toward certain lower fee products, such as fixed income products and ETFs, and away from higher fee equity and alternative products, which may cause a related decline in our revenues and income. In addition, increases in interest rates, particularly if rapid, as well as uncertainty in the future direction of interest rates, may have a negative impact on our fixed income products and decrease the total return on bond investments due to lower market valuations of existing bonds. Moreover, we generally derive higher investment management and distribution fees from our international products than from our U.S. products, and higher sales fees from our U.S. products than from our international products. Changing market conditions may cause a shift in our asset mix between international and U.S. products, which may result in a decline in our revenues and income.
 Our funds may be subject to liquidity risks or an unanticipated large number of redemptions and fund closures.
 Due to market volatility, reputational harm or other events or conditions described above, our funds may need to sell securities or instruments that they hold, possibly at a loss, or draw on any available lines of credit, to obtain cash to maintain sufficient liquidity or settle redemptions, or settle in-kind with securities held in the applicable fund. While we have no legal or contractual obligation to do so, we have in the past provided, and may in the future at our discretion

 provide, financial support to our funds to enable them to maintain sufficient liquidity in any such event. Changes in investor preferences regarding our more popular products have in the past caused, and could in the future cause, sizable redemptions and lower the value of our AUM, which would result in lower revenue and operating results. Increased market volatility and changes in investor preferences also increase the risk of fund closures. Any decrease in the level of our AUM resulting from market declines, credit or interest rate volatility or uncertainty, increased redemptions or other factors could negatively impact our revenues and income.
 INVESTMENT PERFORMANCE AND REPUTATIONAL RISKS
 Poor investment performance of our products could reduce the level of our AUM or affect our sales, and negatively impact our revenues and income.
 Our investment performance, along with achieving and maintaining superior distribution and client service, is critical to the success of our business. Strong investment performance often stimulates sales of our products. Poor investment performance, as has been and may be periodically experienced by certain of our products, as compared to third-party benchmarks or competitive products, has led, and could in the future lead, to a decrease in sales of our products and stimulate redemptions from existing products, generally lowering the overall level of AUM and reducing the management fees we earn. We can provide no assurance that past or present investment performance in our products will be indicative of future performance. If we fail, or appear to fail, to successfully and promptly address the underlying causes of poor investment performance, our future business prospects would likely be negatively affected.
 Harm to our reputation may negatively impact our revenues and income.
 Our reputation is critical to the success of our business. We believe that our brand names have been, and continue to be, well received both in our industry and with our clients, reflecting the fact that our brands, like our business, are based in part on trust and confidence. If our brands or reputation are harmed, existing clients may reduce amounts held in, or withdraw entirely from, our products and services, and/or our clients and products may terminate their management agreements with us, which could reduce the amount of our AUM and cause us to suffer a corresponding loss in our revenues and income. Such impacts could materially and adversely affect our profitability, lead to further business and operational disruptions, and expose us to additional costs and increased reputational damage and risk. In addition, reputational harm may prevent us from attracting new clients or developing new business, and any inability to meet applicable client, regulatory or other requirements may adversely impact our reputation and business.
 GLOBAL OPERATIONAL RISKS
 Our business and operations are subject to adverse effects from the outbreak and spread of contagious diseases.
 The outbreak and spread of contagious diseases have had, and may in the future have, adverse effects on our business, financial condition and results of operations. For example, the COVID-19 pandemic resulted in a widespread global public health crisis. Such infectious illness outbreaks or other adverse public health developments in countries where we operate, as well as local, state and/or national government restrictive measures implemented to control such outbreaks, could adversely affect the economies of many nations or the entire global economy, the financial condition of individual issuers or companies and capital markets, in ways that cannot necessarily be foreseen, and such impacts could be significant and long term. Such extraordinary events and their aftermaths can cause investor fear and panic, which can further adversely affect the operations and performance of companies, sectors, nations, regions and financial markets in general and in ways that cannot necessarily be foreseen. It is not possible to predict the full extent to which a pandemic may evolve and/or adversely impact our business, liquidity, capital resources, financial results and operations.

 We may review and pursue strategic transactions that could pose risks to our business and global operations.
 As part of our global business strategy, we regularly consider, and have discussions with respect to, potential strategic transactions, including acquisitions, dispositions, consolidations, joint ventures or similar transactions, some of which may be deemed material. There can be no assurance that we will find suitable candidates for strategic transactions at acceptable prices, have sufficient capital resources to accomplish our strategy, or be successful in entering into agreements for desired transactions. In addition, such transactions typically involve a number of risks and present financial, managerial and operational challenges. Acquisitions and related transactions pose the risk that any business we acquire may result in the loss of clients, customers or personnel or could underperform relative to expectations. We also may not realize the anticipated benefits of an acquisition, including with respect to revenue, tax benefits, financial benefits or returns, and expense and other synergies. We could also experience financial or other setbacks if transactions encounter unanticipated problems, including problems related to execution or integration. Entries into material transactions typically are announced publicly even though they may remain subject to numerous closing conditions, contingencies and approvals, and there is no assurance that any announced transaction will actually be consummated. Future transactions also may further increase our leverage or, if we issue equity securities to pay for acquisitions, dilute the holdings of our existing stockholders.
 In addition, from time to time, we enter into joint ventures or take minority stakes in companies in which we typically do not have control. These investments may involve risks, including the risk that the controlling stakeholder or joint venture partner may have business interests, strategies or goals that are inconsistent with ours. The business decisions or other actions or omissions of the controlling stakeholder, joint venture partner or the entity itself may result in liability to us or harm to our reputation, or adversely affect the value of our investment in the entity.
 Our business operations are complex and a failure to perform operational tasks properly or comply with applicable regulatory requirements could have an adverse effect on our revenues and income.
 Through our subsidiaries, we provide investment management and related services to investors globally. Further, we outsource various administration, technology, transfer agency and other services for our funds to third-party providers who may serve as a sub-agent or delegate. In order to be competitive and comply with our agreements, we must properly manage our business and subsidiaries around the world, and effectively perform our fund and portfolio administration and related responsibilities, including portfolio record keeping and accounting, security pricing, corporate actions, investment restrictions compliance, daily net asset value computations, account reconciliations, and required distributions to fund shareholders. Many of our operations are complex and dependent on our ability, and the ability of our third-party providers, to process and monitor a large number of transactions effectively, which may occur across numerous markets and currencies at high volumes and frequencies. Although we expend considerable resources on internal controls, supervision, technology and training in an effort to ensure that such transactions do not violate applicable guidelines, rules and regulations or adversely affect our clients, counterparties or us, our operations are ultimately dependent on our personnel, as well as others involved in our business, such as third-party providers and other intermediaries, and subject to human error. Our personnel and others involved in our business may, from time to time, make mistakes that are not always immediately detected, which may disrupt our operations, cause losses, lead to regulatory fines or sanctions, litigation, or otherwise damage our reputation. In addition, any misrepresentation of our services and products in advertising materials, public relations information, social media or other external communications could also adversely affect our reputation and business prospects. Our investment management fees, which represent a majority of our revenues, are dependent on fees earned under investment management agreements that we have with our products and clients. Our revenues could be adversely affected if such agreements representing a significant portion of our AUM are terminated. Further, certain of our subsidiaries may act as general partner for various investment partnerships, which may subject them to liability for the partnerships' liabilities. If we fail to perform and monitor our operations properly, our business could suffer and our revenues and income could be adversely affected.
 Failure to establish adequate controls and risk management policies, or the circumvention of controls and policies, could have an adverse effect on our global operations, reputation and financial position.
 Although we have adopted risk management, operational and financial controls and compliance policies, procedures and programs that are subject to regular review and update, we cannot ensure that these measures will enable us effectively to identify and manage internal and external risks including those related to fraudulent activity and dishonesty. We are subject to the risk that our personnel, contractors, vendors and other third parties may deliberately or recklessly circumvent or violate our controls to commit fraud against our business, products and/or client accounts, pay or solicit bribes, or otherwise act in ways inconsistent with our controls, policies, workplace culture and business principles. Continued

 attempts to circumvent our policies and controls or repeated incidents involving violation of controls and policies, fraud or conflicts of interests could negatively impact our business and reputation and result in adverse publicity, regulatory investigations and actions, legal proceedings and losses and adversely affect our operations, reputation, AUM and financial results.
 We face risks, and corresponding potential costs and expenses, associated with conducting operations and growing our business in numerous countries.
 We sell our products and offer our strategies and investment management and related services in many different regulatory jurisdictions around the world, and intend to continue to expand our operations internationally. As we do so, we will continue to face challenges to the adequacy of our resources, procedures and controls to operate our business consistently and effectively. In order to remain competitive, we must be proactive and prepared to implement necessary resources when growth opportunities present themselves, whether as a result of a business acquisition or rapidly increasing business activities in particular markets or regions. Local regulatory environments may vary widely in terms of scope, adequacy and sophistication. Similarly, local distributors, and their policies and practices as well as financial viability, may vary widely and they may be inconsistent or less developed or mature than other more internationally focused distributors. Growth of our international operations has involved and may continue to involve near-term increases in expenses, as well as additional capital costs, such as information systems and technology costs, and costs related to compliance with particular regulatory or other local requirements or needs. Local requirements or needs also may place additional demands on sales and compliance personnel and resources, such as meeting local language requirements, while also integrating personnel into an organization with a single operating language. Finding, hiring and retaining additional, well-qualified personnel and crafting and adopting policies, procedures and controls to address local or regional requirements remain challenges as we expand our operations internationally.
 Moreover, regulators in non-U.S. jurisdictions could also change their policies or laws in a manner that might restrict or otherwise impede our ability to distribute or authorize products or maintain their authorizations in their respective markets. Any of these local requirements, activities or needs could increase the costs and expenses we incur in a specific jurisdiction without any corresponding increase in revenues and income from operating in the jurisdiction. Certain laws and regulations both inside and outside the U.S. have extraterritorial application. This may lead to duplicative or conflicting legal or regulatory burdens and additional costs and risks.
 Our focus on international markets as a source of investments and sales of our products subjects us to increased exchange rate and market-specific political, economic or other risks that may adversely impact our revenues and income generated overseas.
 While we maintain a significant portion of our operations in the U.S., we also provide services and earn revenues in Asia-Pacific; Europe, Middle East and Africa; Latin America; and Canada. As a result, we are subject to foreign currency exchange risk through our non-U.S. operations. Fluctuations in the exchange rates to the U.S. dollar have affected, and will in the future affect, our financial results from one period to the next. While we have taken steps to reduce our exposure to foreign exchange risk, for example, by denominating a significant amount of our transactions in U.S. dollars, our situation may change in the future. Appreciation of the U.S. dollar could in the future moderate revenues from managing our products internationally, or could affect relative investment performance of certain of our products invested in non-U.S. securities. In addition, we have risk associated with the foreign exchange revaluation of U.S. dollar balances held by certain non-U.S. subsidiaries for which the local currency is the functional currency. Separately, management fees that we earn tend to be higher in connection with non-U.S. AUM than with U.S. AUM. Consequently, downturns in international markets have in the past had, and could in the future have, a significant effect on our revenues and income. Moreover, our emerging market portfolios and revenues derived from managing these portfolios are subject to significant risks of loss from financial, economic, political and diplomatic developments, currency fluctuations, social instability, changes in governmental policies, nationalization, asset confiscation and changes in legislation related to non-U.S. ownership. International trading markets, particularly in some emerging market countries, are often smaller, less liquid, less regulated and significantly more volatile than those in the U.S. Any ongoing and future business, economic, political or social unrest affecting these markets, in addition to any direct consequences such unrest may have on our personnel and facilities located in the affected area, also may have a lasting impact on the long-term investment climate in these and other areas and, as a result, our AUM and the corresponding revenues and income that we generate from them may be negatively affected.

 COMPETITION AND DISTRIBUTION RISKS
 Failure to properly address the increased transformative pressures affecting the investment management industry could negatively impact our business.
 The investment management industry is facing transformative pressures and trends from a variety of different sources including increased fee pressure; a continued shift away from actively managed core equities and fixed income strategies towards alternative, passive and smart beta strategies; increased demands from clients and distributors for client engagement and services; a trend towards institutions developing fewer relationships and partners and reducing the number of investment managers they work with; increased regulatory activity and scrutiny of many aspects of the investment management industry, including transparency/unbundling of fees, inducements, conflicts of interest, capital, liquidity, solvency, leverage, operational risk management, controls and compensation; addressing the key emerging markets in the world, such as China and India, which often have populations with different needs, preferences and horizons than the U.S. and European markets; advances in technology and digital wealth and distribution tools and increasing client interest in interacting digitally with their investment portfolios; and growing digital asset markets that remain subject to substantial volatility and significant regulatory uncertainty. As a result of the trends and pressures discussed above, the investment management industry is facing an increased level of disruption. If we are unable to adapt our strategy and business to address adequately these trends and pressures, we may be unable to meet client needs satisfactorily, our competitive position may weaken, and our business results and operations may be adversely affected.
 Strong competition from numerous and sometimes larger companies with competing offerings and products could limit or reduce sales of our products, potentially resulting in a decline in our market share, revenues and income.
 We compete with numerous investment management companies, securities brokerage and investment banking firms, insurance companies, banks, hedge fund firms and other financial management institutions. Our products also compete with products offered by these competitors, as well as with other financial products. The periodic establishment of new investment management companies and other competitors increases the competition that we face. At the same time, consolidation in the financial services industry has created stronger competitors with greater financial resources and broader distribution channels than our own. Competition is based on various factors, including, among others, business reputation, investment performance, product mix and offerings, business trends and strategic considerations, investor goals and preferences, service quality and innovation, distribution relationships, fees charged, and legal and product requirements and restrictions. Further, although we may offer certain types of ETFs, to the extent that there is a trend among existing or potential clients in favor of lower-fee index and other ETFs, it may favor our competitors who may offer such products that are more established or on a larger scale than we do. Additionally, competing securities broker-dealers and banks, upon which we rely to distribute and sell certain of our funds and other products, also may sell their own proprietary funds and products, which could limit the distribution of our products. To the extent that existing or potential clients, including securities broker-dealers, decide to invest in or distribute the products of our competitors, the sales of our products as well as our market share, revenues and income could decline. Our ability to attract and retain AUM is also dependent on the relative investment performance of our products, offering a mix of products and strategies that meets investor demands, and our ability to maintain our investment management fees and pricing structure at competitive levels.
 Increasing competition and other changes in the third-party distribution and sales channels on which we depend could reduce our revenues and income and hinder our growth.
 We primarily derive our fund sales through third-party broker-dealers, banks, investment advisers and other financial intermediaries. Because we rely on third-party distribution and sales channels to sell our products, we do not control the ultimate investment recommendations given by them to clients. Such financial intermediaries may recommend competing products. Increasing competition for these distribution and sales channels, and regulatory changes and initiatives, have caused our distribution costs to rise and could cause further cost increases in the future, or could otherwise negatively impact the distribution of our products. Consolidations in the broker-dealer or banking industries also could adversely impact our revenues and income. A failure to maintain our third-party distribution and sales channels, or a failure to maintain strong business relationships with our distributors and other intermediaries, may impair our distribution and sales operations. Any inability to access and successfully sell our products to clients through such third-party channels could have a negative effect on our level of AUM and adversely impact our business.

 Moreover, we can provide no assurance that we will continue to have access to the third-party financial intermediaries that currently distribute our products, or that we will continue to have the opportunity to offer all or some of our existing products through them. If several of the major financial advisers that distribute our products were to cease operations or limit or otherwise end the distribution of our products, it could have a significant adverse impact on our revenues and income.
 Further, the standards of conduct and disclosure and reporting requirements, with respect to fees, products, services and possible conflicts of interest, applicable to broker-dealers and other financial intermediaries in the U.S., remain subject to change and enhancement pursuant to business and regulatory developments and requirements, including with respect to investor suitability obligations, enhanced investor protections for retail customers, and increased compliance requirements.
 In addition, Canada, the U.K., the Netherlands and the EU have adopted regimes that ban, or may limit, the payment of commissions and other inducements to intermediaries in relation to certain sales to retail customers in those jurisdictions, and similar regimes are under consideration in several other jurisdictions. Depending on their exact terms, such regimes may result in existing flows of business moving to less profitable channels or even to competitors providing substitutable products outside the regime. Arrangements with non-independent advisers will also continue to be affected as narrower rules related to the requirement that commissions reflect an enhancement of the service to customers continue to come into effect, along with a prescriptive list of permissible non-monetary benefits. The interpretation of the inducements rules has also resulted in major changes to how fund managers, including us, finance investment research with many firms.
 THIRD-PARTY RISKS
 Any failure of our third-party providers to fulfill their obligations, or our failure to maintain good relationships with our providers, could adversely impact our business.
 We currently, and may in the future, depend on third-party providers to support various operational, administrative, technology, transfer agency, market data, distribution, and other business needs of our company. Further, we outsource various administration, technology, transfer agency and other services for our funds to third-party providers. In addition, we may, from time to time, transfer vendor contracts and services from one provider to another. If our third-party providers fail to deliver required services on a timely basis, or if we experience other negative service quality or relationship issues with our providers, we may be exposed to significant costs and/or operational difficulties, and our ability to conduct and grow our business may be impaired. Such administrative and functional changes are costly and complex, and may expose us to heightened operational risks. Any failure to mitigate such risks could result in reputational harm to us, as well as financial losses to us and our clients. The failure of any key provider or vendor to fulfill its obligations to us could result in outcomes inconsistent with our or our clients' objectives and requirements, result in legal liability and regulatory issues for us, and otherwise adversely impact us.
 We may be adversely affected if any of our third-party providers is subject to a successful cyber or security attack.
 Due to our interconnectivity with and dependency upon third-party providers, including, for example, advisors, central agents, exchanges, clearing organizations, other financial institutions, and other service providers supporting our business and technology needs, we may be adversely affected if any of them is subject to a successful cyber attack or other privacy or information security event or disruption. Cybersecurity issues affecting third-party providers are a growing concern in the asset management industry. Many services that we use in our business are delivered from and supported, upgraded and maintained by, third-party providers. A breach, suspension or termination of these services or related support, upgrades and maintenance could cause system delays or interruption, and/or unauthorized access to confidential or private data, that could adversely impact our business, including financial losses to us and our clients, legal and regulatory issues, and reputational harm.
 TECHNOLOGY AND SECURITY RISKS
 Our ability to manage and grow our business successfully can be impeded by systems and other technological limitations.
 Our continued success in effectively managing and growing our business depends on our ability to integrate our varied accounting, financial, information, and operational systems on a global basis. Moreover, adapting or developing the existing technology systems we use to meet our internal needs, as well as client needs, industry demands and new regulatory requirements, is also critical for our business. The introduction of new technologies presents new challenges to us. On an ongoing basis, we need to upgrade and improve our technology, including our technology platform, data

 processing, financial, accounting, shareholder servicing and trading systems. For example, in July 2024, we selected a third-party technology solution to further support our investment management process and unify our investment management technology platform across asset classes to reduce complexity and support business growth, subject to a multi-year transition and implementation period. Further, we also must be proactive and prepared to implement new technology when growth opportunities present themselves, whether as a result of a business acquisition or rapidly increasing business activities in particular markets or regions. These needs could continue to present operational issues or require significant capital spending, and may require us to reevaluate the current value and/or expected useful lives of the technology we use or intend to use, which could negatively impact our results of operations. In addition, technology is subject to rapid advancements and changes and our competitors may, from time to time, implement newer technologies or more advanced platforms for their services and products, including investment management platforms, digital advisers, digital wealth and distribution tools, digital asset tools and other advanced electronic systems, which could adversely affect our business if we are unable to remain competitive.
 Any significant limitation, failure or security breach of our information and cybersecurity infrastructure, software applications, technology or other systems, or those of our third-party providers, that are critical to our operations could disrupt our business and harm our operations, financial condition, and reputation.
 We are highly dependent upon the use of various proprietary and third-party information and security technology, software applications, external third-party services and other technology systems, and remote equipment and connectivity infrastructure, to access critical business systems necessary to operate our business. We are also dependent on the continuity and effectiveness of our information and cybersecurity infrastructure, management oversight and reporting framework, policies, procedures and capabilities to protect our computer and telecommunications systems and the data that reside on or are transmitted through them and contracted third-party systems. We use technology and third-party providers on a daily basis in our business to, among other things, support our business continuity and operations, process and transmit confidential communications, store and maintain confidential and proprietary data including personal employee and/or client data, obtain securities pricing information, process client transactions, and provide reports and other services to our clients. In addition, developments in our use of process automation and artificial intelligence ("AI") further heighten our dependency on technology, as such technology may be complex and unpredictable. Any disruptions, inaccuracies, mismanagement, delays, theft, systems failures, data security or privacy breaches, cybersecurity threats, incidents, attacks, individual or brand impersonations, or other cyber-related fraud, or other security breaches in these and other processes, could subject us to significant client dissatisfaction and financial losses and damage our reputation. We and our third-party providers have been, and we expect to continue to be, the subject of these types of risks, breaches and/or attacks. Ongoing advances in technology, including generative AI, as well as the malicious use of such technology, further heighten the risks to our business.
 Although we take protective measures, including measures to secure and protect information through system security technology and our internal security procedures, as well as measures to assess third-party provider security posture and controls, we can provide no assurance that any of these measures will prove effective or comply with evolving information security standards, particularly given the evolving nature and sophistication of cyber and technology threats and attacks. The technology systems we use or rely on, including those provided and/or leveraged by third-party providers, remain vulnerable to denial of service attacks, unauthorized access, computer viruses, human error and other events and circumstances that may have a security impact, such as an external or internal hacker attack by one or more cyber criminals (including through the use of directive attacks involving impersonation, social engineering, phishing, malware, ransomware and other methods and activities maliciously designed to obtain and exploit confidential information and to cause system and service disruption and other damage), and to our personnel or vendors inadvertently or recklessly causing release of confidential information, which could materially harm our operations and reputation.
 Moreover, while we take precautions to password protect and encrypt our laptops and sensitive information on our other mobile electronic devices, if such devices are stolen, misplaced or left unattended, they may become vulnerable to hacking or other unauthorized use, creating a possible security risk, which may require us to incur additional administrative costs and/or take remedial actions. In addition, our or our third-party providers' failure to manage and operate properly the data centers and third-party cloud storage and computing application services we use could have an adverse impact on our business.
 System disruptions, failures or breaches of the technology we use or the security infrastructure we rely upon, including third-party applications and services, or our failure effectively and timely to identify, detect, manage, mitigate, disclose or communicate a cybersecurity incident, could result in: (i) material financial loss or costs, (ii) delays in clients' ability to access account information or in our ability to process transactions, (iii) the unauthorized disclosure or

 modification of sensitive or confidential client and business information, (iv) loss of valuable information, (v) breach of client and vendor contracts, (vi) liability for stolen assets, information or identity, (vii) remediation costs to repair damage caused by the failure or breach, (viii) additional security and organizational costs to mitigate against future incidents, (ix) reputational harm, (x) loss of confidence in our business and products, (xi) liability for failure to review and disclose applicable incidents or provide relevant updated disclosure properly and timely, (xii) regulatory investigations or actions, and/or (xiii) legal claims, litigation, and liability costs, any one or more of which may be material. Moreover, loss or unauthorized disclosure or transfer of confidential and proprietary data or confidential customer identification information could further harm our reputation and subject us to liability under laws that protect confidential data and personal information, resulting in increased costs or a decline in our revenues or common stock price.
 Our inability to recover successfully, should we experience a disaster or other business continuity problem, could cause material financial loss, regulatory actions, legal liability, and/or reputational harm.
 Should we experience a local or regional disaster or other business continuity problem, such as an earthquake, hurricane, tsunami, terrorist attack, public health crisis, pandemic or other natural or man-made disaster, our continued success will depend, in part, on the safety and availability of our personnel, our office facilities and infrastructure, and the proper functioning of our technology, computer, telecommunication and other systems and operations that are critical to our business. While our operational size, the diversity of locations from which we operate, and our various back-up systems provide us with an advantage, should we experience a local or regional disaster or other business continuity event, we could still experience operational challenges, in particular depending upon how such a local or regional event may affect our personnel across our operations or with regard to particular aspects of our operations, such as key executives or personnel in our technology groups. Moreover, as we grow our operations in new geographic regions, the potential for particular types of natural or man-made disasters, political, economic or infrastructure instabilities, information, technology or security limitations or breaches, or other country- or region-specific business continuity risks increases. Past disaster recovery efforts have demonstrated that even seemingly localized events may require broader disaster recovery efforts throughout our operations and, consequently, we regularly assess and take steps to improve upon our existing business continuity plans. However, a disaster on a significant scale or affecting certain of our key operating areas within or across regions, or our inability to recover successfully following a disaster or other business continuity problem, could adversely impact our business and operations, and could result in regulatory actions, legal liability and/or reputational harm.
 Developing regulatory treatment of AI, and failure to adequately address AI-related challenges, creates a risk of reputational harm and an impediment to growth.
 Artificial Intelligence (AI) is used in many areas of our business and we plan to further incorporate AI into additional areas. The use of AI offers efficiencies, but also introduces significant challenges related to data security, privacy, intellectual property, regulatory compliance, accuracy and bias concerns, and reputational harm, among others. For example, AI technologies, including generative AI, may create content that appears correct but is factually inaccurate or flawed. AI technologies evolve at a rapid pace and their usage requires integration with other technology applications, data platforms and business processes. Globally, courts and regulatory agencies are developing approaches to dealing with AI-related issues, which creates uncertainty around the use of the technology. Use of AI technologies requires ongoing operational controls and procedures, and the development and implementation of appropriate protections and safeguards. Failure to successfully integrate AI technologies, respond to client or market demands, identify or address applicable legal or regulatory issues or effectively manage related risks could result in legal and regulatory liabilities and harm our reputation and growth.
 HUMAN CAPITAL RISKS
 We depend on key personnel and our financial performance could be negatively affected by the loss of their services.
 The success of our business will continue to depend upon our key personnel, including our portfolio managers, investment analysts, sales and management personnel and other professionals as well as our executive officers and business unit heads. Competition for qualified, motivated, and highly skilled executives, professionals and other key personnel in the investment management industry remains significant. Our success depends to a substantial degree upon our ability to find, attract, retain and motivate qualified individuals, including through competitive compensation packages, and upon the continued contributions of these people. Global and/or local laws and regulations could impose restrictions on compensation paid by financial institutions, which could restrict our ability to compete effectively for qualified professionals. As our business develops, we may need to increase the number of individuals that we employ. Moreover, in order to retain certain key personnel, we may be required to increase compensation to such individuals and increase our key

 management succession planning, resulting in additional expense without a corresponding increase in potential revenues. There is no assurance that we will be successful in finding, attracting and retaining qualified individuals, and the departure of key investment personnel, in particular, could cause us to lose clients, which could have a material adverse effect on our financial condition, results of operations and business prospects. In addition, due to the global nature of our business, our key personnel may, from time to time, have reasons to travel to regions susceptible to higher risk of civil unrest, organized crime or terrorism, and we may be unable to ensure the safety of our personnel traveling to such regions.

 CASH MANAGEMENT RISKS
 Our ability to meet cash needs depends upon certain factors, including the market value of our assets, our operating cash flows and our perceived creditworthiness.
 If we are unable to obtain cash, financing or access to the capital markets in a timely manner, we may be forced to incur unanticipated costs or revise our business plans, and our business could be adversely impacted. Further, our access to the capital markets depends significantly on our credit ratings. A reduction in our long- or short-term credit ratings could increase our borrowing costs and limit our access to the capital markets. Volatility in the global financing markets also may impact our ability to access the capital markets should we seek to do so, and may have an adverse effect on investors' willingness to purchase our securities, interest rates, credit spreads and/or the valuation levels of equity markets.
 We are dependent on the earnings of our subsidiaries.
 Substantially all of our operations are conducted through our subsidiaries. As a result, our cash flow and our ability to fund operations are dependent upon the earnings of our subsidiaries and the distribution of earnings, loans or other payments by our subsidiaries. Our subsidiaries are separate and distinct legal entities and have no obligation to fund our payment obligations, whether by dividends, distributions, loans or other payments. Any payments to us by our subsidiaries could be subject to statutory or contractual restrictions and are contingent upon our subsidiaries' earnings and business considerations. Certain of our subsidiaries are subject to regulatory restrictions that may limit their ability to transfer assets to their parent companies. Our financial condition could be adversely affected if certain of our subsidiaries are unable to distribute assets to us.
 LEGAL AND REGULATORY RISKS
 For a more extensive discussion of certain laws, regulations (including certain pending regulatory reforms) and regulators to which we are subject, as well as certain defined terms referenced below, see "Regulation" under Item 1, Business, in Part I of this Annual Report.
 We are subject to extensive, complex, overlapping and frequently changing rules, regulations, policies, and legal interpretations.
 There is uncertainty associated with the regulatory and compliance environments in which we operate. Our business is subject to extensive and complex, overlapping and/or conflicting, and frequently changing and increasing rules, regulations, policies and legal interpretations, around the world. Political and electoral changes, developments and conflicts have in the past introduced, and may in the future introduce, additional uncertainty. Our regulatory and compliance obligations impose significant operational and cost burdens on us and cover a broad range of requirements related to financial reporting and other disclosure matters, securities and other financial instruments, investment and advisory matters, accounting, tax, compensation, ethics, intellectual property, privacy and data protection, sanctions programs, and escheatment requirements. We may be adversely affected by a failure to comply with applicable laws, regulations and changes in the countries in which we operate.
 We may be adversely affected as a result of new or revised legislation or regulations or by changes in the interpretation of existing laws and regulations, in the U.S. and other jurisdictions.
 The laws and regulations applicable to our business generally involve restrictions and requirements in connection with a variety of technical, specialized, and expanding matters and concerns. Over the years, the U.S. federal corporate governance and securities laws, and laws in other jurisdictions, have been augmented substantially and made significantly more complex by various legislation. As we continue to address our legal and regulatory requirements or focus on meeting new or expanded requirements, we may need to continue to expend a substantial amount of additional time, costs and resources. Regulatory reforms may add further complexity to our business and operations and could require us to alter our investment management services and related activities, which could be costly, impede our growth and adversely impact our

 AUM, revenues and income. Regulatory reforms also may impact our clients, which could cause them to change their investment strategies or allocations in a manner adverse to our business. Certain key regulatory reforms and proposals in the U.S. and other jurisdictions that may impact or relate to our business, and may cause us to incur additional obligations, include regulatory matters related to antitrust rules and disclosure, cybersecurity disclosure, sustainability, privacy and data protection, SIFIs, financial products, fiduciary and fund-related reforms, digital assets, tax compliance, and other investment management disclosure and compliance requirements. The impacts of these and other regulatory reforms on us, now and in the future, could be significant. We expect that the regulatory requirements and developments applicable to us will cause us to continue to incur additional compliance and administrative burdens and costs. Any inability to meet applicable requirements within the required timeframes may subject us to sanctions or other restrictions by governments and/or regulators that could adversely impact our broader business objectives.
 Global regulatory and legislative actions and reforms have made compliance in the regulatory environment in which we operate more costly and future actions and reforms could adversely impact our financial condition and results of operations.
 As in the U.S., regulatory and legislative actions outside the U.S. have been, and continue to be, augmented substantially and made more complex. Further, ongoing changes in the EU's regulatory framework applicable to our business, including any new changes in the composition of the EU's member states, may add further complexity to our global risks and operations. Moreover, the adoption of new laws, regulations or standards and changes in the interpretation or enforcement of existing laws, regulations or standards have directly affected, and will continue to affect, our business. With new laws and changes in interpretation of existing requirements, the associated time we must dedicate to and related costs we must incur in meeting the regulatory complexities of our business have increased. We may be required to continue to invest significant additional management time and resources to address new and changing regulations and laws. Outlays associated with meeting regulatory complexities have also increased as we expand our business into new jurisdictions.
 The EU's GDPR strengthened and unified data protection rules for individuals within the EU and addresses export of personal data outside the EU. The failure to comply properly with GDPR rules on a timely basis and to maintain ongoing compliance with such rules may subject us to enforcement proceedings and significant fines and costs. For example, a failure to comply with GDPR could result in fines up to 4% of our annual global revenues.
 Compliance activities to address these and other new legal requirements have required, and will continue to require, us to expend additional time and resources, and, consequently, we are incurring increased costs of doing business, which may negatively impact our profitability and future financial results. Finally, any further regulatory and legislative actions and reforms affecting the investment management industry, including compliance initiatives, may negatively impact revenues by increasing our costs of accessing or operating in financial markets or by making certain investment offerings less favorable to our clients.
 Failure to comply with the laws, rules or regulations in any of the jurisdictions in which we operate could result in substantial harm to our reputation and results of operations.
 As with all investment management companies, our activities are highly regulated in almost all countries in which we conduct business. Failure to comply with the applicable laws, rules, regulations, codes, directives, notices or guidelines in any of our jurisdictions could result in regulatory enforcement, civil liability, criminal liability and/or the imposition of a range of sanctions or orders against us, including, as applicable, monetary damages, injunctions, disgorgements, fines, penalties, cease and desist orders, censures, reprimands, and the revocation, cancellation, suspension or restriction of licenses, registration status or approvals held by us or our business in a jurisdiction or market, any of which could adversely affect our reputation and operations. Moreover, any errors, whether financial or otherwise, if material, could damage our reputation and adversely affect our business. While management has focused attention and resources on our compliance policies, procedures and practices, the regulatory environments of the jurisdictions where we conduct our business, or where our products are organized or sold, are complex, uncertain and subject to change. Local regulatory environments may vary widely and place additional demands on our sales, investment, legal and compliance personnel. In recent years, the regulatory environments in which we operate have seen significant increased and evolving regulations, which have imposed and may continue to impose additional compliance and operational requirements and costs on us in the applicable jurisdictions. Regulators could also change their policies or laws in a manner that might restrict or otherwise impede our ability to offer our services and products in their respective markets, or we may be unable to keep up with, or adapt to, the ever changing, complex regulatory requirements in such jurisdictions or markets, which could further negatively impact our business.

 Changes in tax laws or exposure to additional income tax liabilities could have a material impact on our financial condition, revenues and income.
 We are subject to complex tax regimes, changing tax laws, income taxes, non-income-based taxes, and ongoing tax audits, in the various jurisdictions in which we operate. Tax authorities may disagree with certain positions we have taken and assess additional taxes. We regularly assess the likely outcomes of these audits in order to determine the appropriateness of our tax provision. However, there can be no assurance that we will accurately predict the outcomes of these audits and the actual outcomes could have a material impact on our financial condition. Changes in tax laws or rulings, including corporate tax rate increases, capital gains rate increases for fund investors and other tax rate increases impacting our clients and their willingness to invest in our products, may at times materially impact our revenues and income.
 Regulatory and governmental examinations and/or investigations, litigation and the legal risks associated with our business, could adversely impact our AUM, increase costs and negatively impact our profitability and/or our future financial results.
 We operate in a highly regulated industry and have received and routinely receive and respond to regulatory and governmental requests for documents or other information, subpoenas, examinations and, in some instances, investigations in connection with our business activities. For example, as noted in the "Legal Proceedings" section in Note 15 - Commitments and Contingencies, our subsidiary, Western Asset Management Company ("WAM") remains the subject of parallel investigations by the SEC and the DOJ. Further, regulatory or governmental examinations or investigations that have been inactive could become active. In addition, we are named as a party in litigation in the ordinary course of business. Claims made against us, including those without merit, have resulted and may continue to result in reputational harm and responding to such matters is an expensive process. Risks associated with legal liability often are difficult to assess or quantify and their existence and magnitude can remain unknown for significant periods of time. Regulatory enforcement and civil litigation matters can result in the imposition of a range of sanctions or orders against us, including, as applicable, monetary damages, injunctions, disgorgements, fines, penalties, cease and desist orders, censures, reprimands, and the revocation, cancellations, suspension or restriction of licenses, registration status or approvals held by us or our business. In addition, we may be obligated, and under our certificate of incorporation, bylaws and form of director indemnification agreement are obligated under certain conditions, or may choose, to indemnify directors, officers or personnel against liabilities and expenses they may incur in connection with such matters to the extent permitted under applicable law. Financial exposures, including AUM outflows, from and expenses incurred relating to any examinations, investigations, enforcement actions, litigation, and/or settlements have and may continue to adversely impact our AUM, increase costs, and negatively impact our reputation, profitability, and revenue any of which could have a material negative impact on our financial results. For a discussion of certain legal proceedings and regulatory matters in which we are involved, see "Legal Proceedings" in Note 15 - Commitments and Contingencies in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report.
 Our contractual obligations may subject us to indemnification costs and liability to third parties.
 In the ordinary course of business, we enter into contracts with third parties, including, without limitation, clients, vendors, and other service providers, that contain a variety of representations and warranties and that provide for indemnifications by us in certain circumstances. Pursuant to such contractual arrangements, we may be subject to indemnification costs and liability to third parties if, for example, we breach any material obligations under the agreements or agreed standards of care, or in the event such third parties have certain legal claims asserted against them. The terms of these indemnities vary from contract to contract, and future indemnification claims against us could negatively impact our financial condition.
 Failure to protect our intellectual property may negatively impact our business.
 Although we take steps to safeguard and protect our intellectual property, including but not limited to our trademarks, patents, copyrights and trade secrets, there can be no assurance that we will be able to effectively protect our rights. If our intellectual property rights were violated, we could be subject to economic and reputational harm that could negatively impact our business and competitiveness in the marketplace. Conversely, while we take efforts to avoid infringement of the intellectual property of third parties, if we are deemed to infringe on a third party's intellectual property rights it could expose us to litigation risks, license fees, liability and reputational harm.

 Item 1B. Unresolved Staff Comments.
 None.

 Item 1C. Cybersecurity.
 Risk Management and Strategy
 We recognize the importance of assessing, identifying and managing material risks from cybersecurity threats. Our cybersecurity program focuses on (i) identification of and protection from cybersecurity risks, (ii) detection and analysis of cybersecurity events, (iii) response to and recovery from cybersecurity incidents, and (iv) education and awareness. Under our program, designated personnel are responsible for:
 • assessing the severity of a cybersecurity incident and associated threat;
 • containing the threat;
 • remediating the threat, including recovery of data and access to systems;
 • analyzing the reporting obligations associated with the incident; and
 • performing post-incident analysis and program improvements.
 Our cybersecurity team is led by our Chief Security Officer ("CSO") or the CSO's delegee partnering with our risk, technology, legal, compliance, privacy, human resources, and other applicable business teams.
 Identification and Protection. Our cybersecurity program has established processes to identify and categorize cybersecurity threats and vulnerabilities as part of our risk identification process, pursuant to which we regularly seek to obtain, monitor, assess and respond to evolving threat and vulnerability information. Information about threats and vulnerabilities generally originates from multiple sources, including, but not limited to, government, information-sharing organizations, industry threat intelligence sources, and third parties. The identification of risks is supported through various security controls and testing to help minimize exposure to reported cybersecurity threats and vulnerabilities. These security controls include, but are not limited to, penetration testing, compromise assessments, vulnerability scanning, and various additional internal and external security audits and assessments. In addition, we maintain a third-party risk management program that includes an initial and periodic cybersecurity assessment on critical vendors' security posture and controls.
 Detection and Analysis. Cybersecurity incidents may be detected through a variety of means, which include, but are not limited to, automated event-detection notifications or similar technologies that are monitored by our security operations team, as well as notifications from employees or third-party providers. Once a cybersecurity incident is identified, including third-party cybersecurity events, our incident response team investigates the incident, determines the nature of the event and assesses the severity of the event, including any operational impact and sensitivity of any compromised data.
 Response and Recovery. In the event of a cybersecurity incident, our initial focus is to contain the cybersecurity incident as quickly as possible consistent with our incident response plan. Once a cybersecurity incident is contained, we focus on remediation and recovery activities, which depend on the nature of the cybersecurity incident. We have relationships with third-party providers to assist with cybersecurity containment and remediation efforts, including for example, forensic investigations and incident response management. If a cybersecurity incident materially impacts us, or is expected to materially impact us, we promptly notify senior management, the Franklin Board of Directors ("Board") and/or Franklin Audit Committee, as appropriate based on the severity of the incident. Our response plan also addresses engagement with appropriate individuals and committees with respect to disclosure determinations related to cybersecurity incidents. We review and, if necessary, update our cyber security incident response plan at least annually.
 Education and Awareness. Our cybersecurity education and awareness program for employees and contractors covers a wide range of cyber topics including, but not limited to, policies and procedures, business/technology roles and responsibilities, threats and vulnerabilities, data privacy, confidentiality and asset protection. Our employees and contractors are required to complete mandatory initial onboarding and annual cybersecurity trainings, supplemented by other periodic cyber-related testing and training.

 Governance
 Our Board is responsible for the oversight of our cybersecurity risk management program. The Board has delegated to the Franklin Audit Committee oversight responsibility regarding cybersecurity risks. Our CSO reports directly to our Chief Risk and Transformation Officer, each of whom has extensive experience in information security and risk management. The Board and/or Audit Committee receive(s) a report on cybersecurity matters, including threats, events and program enhancements, at least annually. We update our cybersecurity policies at a minimum annually and benchmark our program to applicable cybersecurity standards and frameworks.
 We are not aware of any cybersecurity threats or incidents that have materially impacted us during the fiscal year ended September 30, 2025, or that are reasonably likely to materially affect our business, including our business strategy, results of operations or financial condition. We routinely face risks of cybersecurity incidents, whether through attempted or actual: cyber-attacks or cyber intrusions, ransomware and other forms of malware, computer viruses, attachments to emails, individual or brand impersonation, phishing, extortion or other scams. Although we make efforts to maintain the security and integrity of our systems, these systems and the proprietary, confidential and personal information that resides on or is transmitted through them, are subject to the risk of a cybersecurity incident or disruption, and there can be no assurances regarding the effectiveness of our security efforts and measures or those of our third-party providers who have access to, transmit, or store such data. For additional information regarding our cybersecurity risks, see our risk factors under Item 1A in Part I of this Annual Report.

 Item 2. Properties.
 We conduct our worldwide operations using a combination of owned and leased facilities. While we believe our facilities are suitable and adequate to conduct our business at present, we will continue to acquire, lease and dispose of facilities throughout the world, as necessary.
 We own our San Mateo, California corporate headquarters and various other office buildings in the U.S. and internationally. We lease excess owned space to third parties under leases with terms through 2036. Our owned properties consist of the following:

 Location
 Owned Square
Footage
 Owned Square
Footage Leased
to Third Parties

 San Mateo, California
 743,793
 475,183

 St. Petersburg, Florida
 560,948
 392,458

 Rancho Cordova, California
 445,023
 47,556

 Hyderabad, India
 379,052
 23,088

 Poznan, Poland
 284,436
 87,557

 Ft. Lauderdale, Florida
 102,246
 31,705

 Edinburgh, Scotland
 87,016
 24,879

 Other
 75,239
 11,350

 Total
 2,677,753
 1,093,776

 We lease office space in 16 states in the U.S. and Washington, D.C., and internationally, including Australia, Brazil, Canada, the People's Republic of China (including Hong Kong), Germany, India, Japan, Luxembourg, Mexico, Singapore, South Korea, United Arab Emirates and the U.K. As of September 30, 2025, we leased and occupied approximately 2,022,000 square feet of office space worldwide, and subleased to third parties approximately 185,000 square feet of excess leased space.

 Item 3. Legal Proceedings.
 Incorporated herein by reference is information regarding certain legal proceedings and regulatory matters in which we are involved as set forth under "Legal Proceedings" contained in Note 15 – Commitments and Contingencies in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report.

 Item 4. Mine Safety Disclosures.
 Not applicable.

 INFORMATION ABOUT OUR EXECUTIVE OFFICERS
 The following description of our executive officers is included as an unnumbered item in this Part I of this Annual Report in lieu of being included in our definitive proxy statement for our annual meeting of stockholders. Set forth below are the name, age, present title, and certain other information for each of our executive officers as of the filing date of this Annual Report. Generally, each executive officer is appointed by our board of directors and holds his or her office until the earlier of his or her death, resignation, retirement, disqualification or removal.
 Jennifer M. Johnson
 Age 61
 Chief Executive Officer and director of Franklin since February 2020; formerly, President of Franklin from December 2016 to October 2025, Chief Operating Officer of Franklin from February 2017 to February 2020, Co-President of Franklin from October 2015 to December 2016, Executive Vice President and Chief Operating Officer of Franklin from March 2010 to September 2015, Executive Vice President – Operations and Technology of Franklin from December 2005 to March 2010, and Senior Vice President and Chief Information Officer of Franklin from May 2003 to December 2005; officer and/or director of certain subsidiaries of Franklin; officer, director and/or trustee of certain funds registered as investment companies managed or advised by subsidiaries of Franklin. Director of Thermo Fisher Scientific Inc. since July 2023.
 Gregory E. Johnson
 Age 64
 Executive Chairman of Franklin since February 2020, Chairman of the Board of Franklin since June 2013 and director of Franklin since January 2007; Chairman of the San Francisco Giants, a professional baseball organization, since November 2019; formerly, Chief Executive Officer of Franklin from July 2005 to February 2020, Co-Chief Executive Officer of Franklin from January 2004 to July 2005, and President of Franklin from December 1999 to September 2015; officer and/or director of certain subsidiaries of Franklin; officer, director and/or trustee of certain funds registered as investment companies managed or advised by subsidiaries of Franklin.
 Rupert H. Johnson, Jr.
 Age 85
 Vice Chairman of Franklin since December 1999 and director of Franklin since 1971; officer and/or director of certain subsidiaries of Franklin; officer, director and/or trustee of certain funds registered as investment companies managed or advised by subsidiaries of Franklin.
 Daniel Gamba
 Age 58
 Co-President and Chief Commercial Officer of Franklin since October 2025; formerly, President of Northern Trust Asset Management and Executive Vice President of Northern Trust Corporation financial services firms from April 2023 to September 2025; and formerly spent over two decades at Blackrock, Inc. financial services firm where, among other roles, he served as Co-Head of Fundamental Equities from 2020 to February 2023, Global Head of Active Equity Product Strategy from 2016 to 2020, and Head of Americas Institutional iShares Business and Co-Head iShares U.S. from 2011 to 2016.

 Terrence J. Murphy
 Age 58
 Co-President of Franklin since October 2025 and Head of Public Market Investments of Franklin since October 2022; Chairman since 2014 and Chief Executive Officer and President since 2012 of ClearBridge Investments, LLC, a subsidiary of Franklin; officer and/or director of certain other subsidiaries of Franklin. Formerly, Executive Vice President of Franklin from October 2022 to October 2025, Chief Operating Officer and Chief Financial Officer of ClearBridge from 2006 to 2011, Chief Financial Officer of Citigroup Asset Management a financial services firm from 2005 to 2006 and Director of Planning from 2000 to 2005; and business Controller for various product lines at Citigroup's Corporate and Investment Bank from 1997 to 2000.

 Matthew Nicholls
 Age 53
 Co-President of Franklin since October 2025, Chief Financial Officer of Franklin since May 2019 and Chief Operating Officer since April 2022; officer and/or director of certain subsidiaries of Franklin. Formerly, Executive Vice President of Franklin from May 2019 to October 2025, and formerly with Citigroup, Inc. a financial services firm from 1995 to May 2019, as Managing Director, Global Head of Financial Institutions, Corporate Banking, and Global Head of Asset Management, Corporate and Investment Banking, from 2017 to May 2019, as Managing Director, Co-Head, Financial Institutions Corporate and Investment Banking, North America, and Global Head of Asset Management, Corporate and Investment Banking, from 2014 to 2017, as Managing Director, Co-Head, North America, Financial Institutions Corporate and Investment Banking from 2011 to 2014, as Managing Director and Co-Head, North America, Financial Institutions Corporate Banking from 2007 to 2011, and as Managing Director and Co-Head of Asset Management Banking from 2006 to 2007.

 Thomas C. Merchant
 Age 57
 Executive Vice President and General Counsel of Franklin since May 2022 and Assistant Secretary since December 2024; formerly, Corporate Secretary from July 2021 to December 2024; oversaw global regulatory compliance of Franklin as Deputy General Counsel from August 2020 to May 2022; officer and/or director of certain subsidiaries of Franklin. Formerly, General Counsel and Executive Vice President of Legg Mason, Inc. from 2013 and Secretary from 2008, until its acquisition by Franklin Templeton in July 2020; joined Legg Mason as Associate General Counsel in 1998, serving as Corporate General Counsel and Deputy General Counsel. Formerly, served as a Corporate Associate at Shearman & Sterling, a law firm, in New York from 1993 to 1998.
 Family Relationships
 Jennifer M. Johnson and Gregory E. Johnson are siblings, and their uncle is Rupert H. Johnson, Jr. Each serves as both a director and an executive officer of Franklin.

 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
 Our common stock is traded on the NYSE under the ticker symbol "BEN." At October 31, 2025, there were 2,231 stockholders of record of our common stock.
 The following table provides information with respect to the shares of our common stock that we repurchased during the three months ended September 30, 2025.

 Month
 Total Number of
Shares Purchased
 Average Price
Paid per Share
 Total Number of
Shares Purchased
As Part of Publicly
Announced Plans
or Programs
 Maximum
Number of Shares
that May Yet Be
Purchased Under
the Plans or
Programs

 July 2025
 348,101
 $
 24.01
 348,101
 21,539,529

 August 2025
 2,283,211
 25.65
 2,283,211
 19,256,318

 September 2025
 6,629
 24.66
 6,629
 19,249,689

 Total
 2,637,941
 2,637,941

 Under our stock repurchase program, which is not subject to an expiration date, we can repurchase shares of our common stock from time to time in the open market and in private transactions in accordance with applicable laws and regulations, including without limitation applicable federal securities laws. In order to pay taxes due in connection with the vesting of employee and executive officer stock and stock unit awards, we may repurchase shares under our program using a net stock issuance method. In December 2023, our Board of Directors authorized the repurchase of up to an additional 27.2 million shares of our common stock in either open market or private transactions, for a total of up to 40.0 million shares available for repurchase under the stock repurchase program as of such authorization date.

 Item 6. [Reserved]

 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

 FORWARD-LOOKING STATEMENTS
 The following discussion and analysis of the results of operations and financial condition of Franklin Resources, Inc. ("Franklin") and its subsidiaries (collectively, the "Company") should be read in conjunction with the "Forward-looking Statements" disclosure set forth in Part I and the "Risk Factors" set forth in Item 1A of Part I of this Annual Report on Form 10 K (this "Annual Report") and in any more recent filings with the U.S. Securities and Exchange Commission (the "SEC"), each of which describe our risks, uncertainties and other important factors in more detail. Words such as "we," "us," "our" and similar terms refer to the Company.

 OVERVIEW
 Franklin is a holding company with subsidiaries operating under our Franklin Templeton and/or subsidiary brand names. We are a global investment management organization that derives operating revenues and net income from providing investment management and related services to investors in jurisdictions worldwide. We deliver our investment capabilities through a variety of investment products, which include our sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products and other investment vehicles. Related services include fund administration, sales and distribution, and shareholder servicing, which we may perform directly or outsource to third parties. We offer our services and products under our various distinct brand names, including, but not limited to, Alcentra, Apera, Benefit Street Partners, Brandywine Global Investment Management, Canvas, Clarion Partners, ClearBridge Investments, Fiduciary Trust International, Franklin, Franklin Mutual Series, K2, Legg Mason, Lexington Partners, O'Shaughnessy, Putnam, Royce, Templeton, and Western Asset Management Company. We offer a broad product mix of equity, fixed income, alternative, multi-asset and cash management asset classes and solutions that meet a wide variety of specific investment goals and needs for individual and institutional investors. We also provide sub-advisory services to certain investment products sponsored by other companies

 which may be sold to investors under the brand names of those other companies or on a co-branded basis.
 The level of our revenues depends largely on the level and relative mix of assets under management ("AUM"). As noted in the "Risk Factors" section set forth above in Item 1A of Part I of this Annual Report, the amount and mix of our AUM are subject to significant fluctuations, including as a result of reputational harm, that can negatively impact our revenues and income. The level of our revenues also depends on the fees charged for our services, which are based on contracts with our funds and customers, fund sales, and the number of shareholder transactions and accounts. These arrangements could change in the future.
 Despite periods of volatility driven by uncertainty regarding U.S. economic and trade policies, during the fiscal year ended September 30, 2025 ("fiscal year 2025"), U.S. and global equity markets provided positive returns, due in part to strong corporate earnings and easing of monetary policy. The S&P 500 Index and MSCI World Index increased 14.8% and 17.8% for the fiscal year. The global bond markets were also positive as the Bloomberg Barclays Global Aggregate Index increased 7.9% for the fiscal year.
 Our total AUM was $1,661.2 billion at September 30, 2025, 1% lower than at September 30, 2024. Simple monthly average AUM ("average AUM") increased 3% during fiscal year 2025.
 The business and regulatory environments in which we operate globally remain complex, uncertain and subject to change. We are subject to various laws, rules and regulations globally that impose restrictions, limitations, registration, reporting and disclosure requirements on our business, and add complexity to our global compliance operations.
 Uncertainties regarding the global economy remain for the foreseeable future. As we continue to confront the challenges of the current economic and regulatory environments, we remain focused on the investment performance of our products and on providing high quality service to our clients. We continuously perform reviews of our business model. While we remain focused on expense management, we will also seek to attract, retain and develop personnel and invest strategically in systems and technology that will provide a secure and stable environment. We will continue to seek to protect and further our brand recognition while developing and maintaining broker-dealer and client relationships. The success of these and other strategies may be influenced by the factors discussed in the "Risk Factors" section.
 The following discussion and analysis includes a comparison of our financial results for fiscal year 2025 to fiscal year 2024. For discussion and analysis of the financial results for fiscal year 2024 compared to fiscal year 2023, see Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, which was filed with the SEC on November 12, 2024.

 RESULTS OF OPERATIONS

 (in millions, except per share data)

 2025
 2024
 2023

 Operating revenues
 $
 $
 $
 %
 %

 Operating income
 604.1
 407.6
 1,102.3
 %
 (63
 %)

 Operating margin1

 6.9
 %
 4.8
 %
 14.0
 %

 Net income attributable to Franklin Resources, Inc.
 $
 524.9
 $
 464.8
 $
 882.8
 %
 (47
 %)

 Diluted earnings per share
 $
 0.91
 $
 0.85
 $
 1.72
 %
 (51
 %)

 As adjusted (non-GAAP):2

 Adjusted operating income
 $
 1,640.2
 $
 1,713.1
 $
 1,823.8
 (4
 %)
 (6
 %)

 Adjusted operating margin
 24.5
 %
 26.1
 %
 29.9
 %

 Adjusted net income
 $
 1,195.8
 $
 1,276.7
 $
 1,332.2
 (6
 %)
 (4
 %)

 Adjusted diluted earnings per share
 $
 2.22
 $
 2.39
 $
 2.60
 (7
 %)
 (8
 %)

 1Defined as operating income divided by total operating revenues.
 2"Adjusted operating income," "adjusted operating margin," "adjusted net income" and "adjusted diluted earnings per share" are based on methodologies other than generally accepted accounting principles. See "Supplemental Non-GAAP Financial Measures" for definitions and reconciliations of these measures.

 ASSETS UNDER MANAGEMENT
 AUM by asset class was as follows:

 2025
 2024
 2023

 $
 686.2
 $
 632.1
 $
 430.4
 %
 %

 438.7
 556.4
 483.1
 (21
 %)
 %

 263.9
 249.9
 254.9
 %
 (2
 %)

 193.9
 176.2
 145.0
 %
 %

 Cash Management
 78.5
 64.0
 60.8
 %
 %

 Total
 $
 $
 $
 (1
 %)
 %

 Changes in average AUM are generally more indicative of trends in revenue for providing investment management services than the year-over-year change in ending AUM. Average AUM and the mix of average AUM by asset class are shown below.

 Average AUM 1

 2025
 2024
 2023

 $
 637.0
 $
 544.0
 $
 436.1
 %
 %

 466.5
 542.3
 499.7
 (14
 %)
 %

 253.7
 254.9
 251.9
 %
 %

 179.8
 161.1
 144.4
 %
 %

 Cash Management
 69.7
 63.5
 68.3
 %
 (7
 %)

 Total
 $
 1,606.7
 $
 1,565.8
 $
 1,400.4
 %
 %

 1Average AUM is calculated as the average of the month-end AUM for the trailing thirteen months.

 Mix of Average AUM

 2025
 2024
 2023

 %
 %
 %

 %
 %
 %

 %
 %
 %

 %
 %
 %

 Cash Management
 %
 %
 %

 Total
 %
 %
 %

 Components of the change in AUM are shown below. Net market change, distributions and other includes appreciation (depreciation), distributions to investors that represent return on investments and return of capital, and foreign exchange revaluation.

 2025 1

 2024
 2023

 Beginning AUM
 $
 $
 $
 1,297.4

 Long-term inflows
 343.9
 319.0
 254.9

 Long-term outflows
 (441.3)
 (351.6)
 (276.2)

 Long-term net flows
 (97.4)
 (32.6)
 (21.3)

 Cash management net flows
 12.6
 2.7
 4.3

 Total net flows
 (84.8)
 (29.9)
 (17.0)

 Acquisitions (Disposition)

 (0.2)
 148.3
 34.9

 Net market change, distributions and other
 67.6
 186.0
 58.9

 Ending AUM
 $
 $
 $

 1On March 31, 2025, cash management AUM and net flows were updated to include $6.3 billion of AUM and $3.7 billion of net inflows related to two money market mutual fund share classes previously closed to third-party investors.
 Components of the change in AUM by asset class were as follows:

September 30, 2025
 Fixed
Income
 Cash
Management
 Total

 AUM at October 1, 2024
 $
 632.1
 $
 556.4
 $
 249.9
 $
 176.2
 $
 64.0
 $

 Long-term inflows
 159.7
 114.7
 23.2
 46.3
 —
 343.9

 Long-term outflows

 (160.1)
 (237.4)
 (10.3)
 (33.5)
 —
 (441.3)

 Long-term net flows
 (0.4)
 (122.7)
 12.9
 12.8
 —
 (97.4)

 Cash management net flows

 —
 —
 —
 —
 12.6
 12.6

 Total net flows

 (0.4)
 (122.7)
 12.9
 12.8
 12.6
 (84.8)

 Disposition

 —
 (0.1)
 (0.1)
 —
 —
 (0.2)

 Net market change, distributions and other

 54.5
 5.1
 1.2
 4.9
 1.9
 67.6

 AUM at September 30, 2025
 $
 686.2
 $
 438.7
 $
 263.9
 $
 193.9
 $
 78.5
 $

 AUM decreased $17.4 billion or 1% during fiscal year 2025 primarily due to $97.4 billion of long-term net outflows, inclusive of $141.9 billion of long-term net outflows at Western Asset Management ("WAM"), partially offset by the positive impact of $67.6 billion of net market change, distributions and other, and $12.6 billion of cash management net inflows. Long-term net outflows include $30.4 billion of long-term reinvested distributions. Net market change, distributions and other primarily consists of $125.8 billion of market appreciation partially offset by $57.7 billion of long-term distributions, primarily from the equity and alternative asset classes, and a $0.5 billion decrease from foreign exchange revaluation,. The market appreciation occurred in all asset classes, most significantly in the equity asset class, and reflected positive returns in the global equity and fixed income markets. Foreign exchange revaluation from AUM in products that are not U.S. dollar denominated was primarily due to a stronger U.S. dollar compared to the Australian dollar, Canadian dollar, Indian Rupee, and Japanese Yen, partially offset by a weaker U.S. dollar compared to the Euro.

 Long-term inflows increased 8% to $343.9 billion, as compared to the prior year, driven by higher inflows across equity, fixed income, and alternative strategies, particularly in open-end funds, retail separately managed accounts, private funds, and sub-advised mutual funds. This growth was partially offset by declines in fixed income inflows at WAM, primarily within institutional separate accounts, open-end funds, and sub-advised mutual funds. Long-term outflows increased 26% to $441.3 billion, driven by higher outflows across multiple fixed income vehicles, primarily at WAM, and from equity open-end and sub-advised mutual funds.

September 30, 2024
 Fixed
Income
 Cash
Management
 Total

 AUM at October 1, 2023
 $
 430.4
 $
 483.1
 $
 254.9
 $
 145.0
 $
 60.8
 $

 Long-term inflows
 123.3
 142.5
 16.7
 36.5
 —
 319.0

 Long-term outflows

 (129.3)
 (181.3)
 (12.5)
 (28.5)
 —
 (351.6)

 Long-term net flows
 (6.0)
 (38.8)
 4.2
 8.0
 —
 (32.6)

 Cash management net flows

 —
 —
 —
 —
 2.7
 2.7

 Total net flows

 (6.0)
 (38.8)
 4.2
 8.0
 2.7
 (29.9)

 Acquisition

 81.3
 59.3
 0.7
 5.8
 1.2
 148.3

 Net market change, distributions and other

 126.4
 52.8
 (9.9)
 17.4
 (0.7)
 186.0

 AUM at September 30, 2024
 $
 632.1
 $
 556.4
 $
 249.9
 $
 176.2
 $
 64.0
 $

 AUM by sales region was as follows:

 2025
 2024
 2023

 United States
 $
 1,171.5
 $
 1,177.1
 $
 979.9
 %
 %

 International

 Europe, Middle East and Africa

 215.1
 209.1
 165.1
 %
 %

 165.8
 178.0
 117.6
 (7
 %)
 %

 Americas, excl. U.S.
 108.8
 114.4
 111.6
 (5
 %)
 %

 Total international
 $
 489.7
 $
 501.5
 $
 394.3
 (2
 %)
 %

 Total
 $
 $
 $
 (1
 %)
 %

 The region in which investment products are sold may differ from the geographic area in which we provide investment management and related services to the products.
 Investment Performance Overview
 A key driver of our overall success is the long-term investment performance of our investment products. A measure of the performance of these products is the percentage of AUM exceeding peer group medians and benchmarks. We compare the relative performance of our mutual funds against peers, and of our strategy composites against benchmarks.

 The performance of our mutual fund products against peer group medians and of our strategy composites against benchmarks is presented in the table below.

 Peer Group Comparison1

 Benchmark Comparison2

 % of Mutual Fund AUM
in Top Two Peer Group Quartiles
 % of Strategy Composite AUM
Exceeding Benchmark

 1-Year
 3-Year
 5-Year
 10-Year
 1-Year
 3-Year
 5-Year
 10-Year

 %
 %
 %
 %
 %
 %
 %
 %

 %
 %
 %
 %
 %
 %
 %
 %

 Total AUM3

 %
 %
 %
 %
 %
 %
 %
 %

 1Mutual fund performance is sourced from Morningstar and measures the percent of ranked AUM in the top two quartiles versus peers. Total mutual fund AUM measured for the 1-, 3-, 5- and 10-year periods represents 40%, 39%, 39% and 36% of our total AUM as of September 30, 2025.
 2Strategy composite performance measures the percent of composite AUM beating its benchmark. The benchmark comparisons are based on each account's/composite's (strategy composites may include retail separately managed accounts and mutual fund assets managed as part of the same strategy) return as compared to a market index that has been selected to be generally consistent with the asset class of the account/composite. Total strategy composite AUM measured for the 1-, 3-, 5- and 10-year periods represents 56%, 55%, 55% and 50% of our total AUM as of September 30, 2025.
 3Total mutual fund AUM includes performance of our alternative and multi-asset funds, and total strategy composite AUM includes performance of our alternative composites. Alternative and multi-asset AUM represent 16% and 12% of our total AUM at September 30, 2025.
 Mutual fund performance data includes U.S. and cross-border domiciled mutual funds and exchange-traded funds, excludes cash management and fund of funds, and assumes the reinvestment of dividends.
 Past performance is not indicative of future results. For strategy composite AUM included in institutional and retail separately managed accounts and investment funds managed in the same strategy as separate accounts, performance comparisons are based on gross-of-fee performance. For investment funds which are not managed in a separate account format, performance comparisons are based on net-of-fee performance. These performance comparisons do not reflect the actual performance of any specific separate account or investment fund; individual separate account and investment fund performance may differ. The information in this presentation is provided solely for use in connection with this document, and is not directed toward existing or potential clients of Franklin.

 OPERATING REVENUES
 The table below presents the percentage change in each operating revenue category.

 2025
 2024
 2023

 $
 6,981.8
 $
 6,822.2
 $
 6,452.9
 %
 %

 1,474.7
 1,381.0
 1,203.7
 %
 %

 264.5
 229.3
 152.7
 %
 %

 Other
 49.7
 45.5
 40.1
 %
 %

 Total Operating Revenues
 $
 $
 $
 %
 %

 Investment Management Fees
 Investment management fees are generally calculated under contractual arrangements with our investment products and the products for which we provide sub-advisory services as a percentage of AUM. Annual fee rates vary by asset class and type of services provided. Fee rates for products sold outside of the U.S. are generally higher than for U.S. products.
 Investment management fees increased $159.6 million in fiscal year 2025 primarily due to one additional quarter of revenue earned by Putnam, which was acquired on January 1, 2024, an increase in average equity AUM, and an increase in performance fees, partially offset by the impact of WAM outflows and catch-up fees recognized in the prior year at the closing of fundraising rounds in a secondary private equity fund.
 Our effective investment management fee rate excluding performance fees (investment management fees excluding performance fees divided by average AUM) was 40.5 and 41.1 basis points for fiscal years 2025 and 2024. The rate decrease was primarily due to higher average AUM in lower-fee equity products and catch-up fees recognized in the prior year at the closing of fundraising rounds in a secondary private equity fund, partially offset by the impact of outflows in lower-fee products at WAM.
 Performance fees were $474.0 million and $390.7 million for fiscal years 2025 and 2024. The increase was primarily due to changes in the amount of performance fees earned by our alternative specialist investment managers.
 Our product offerings and global operations are diverse. As such, the impact of future changes in AUM on investment management fees will be affected by the relative mix of asset class, geographic region, distribution channel and investment vehicle of the assets.

 Sales and Distribution Fees
 Sales and distribution fees primarily consist of upfront sales commissions and ongoing distribution fees. Sales commissions are earned from the sale of certain classes of sponsored funds at the time of purchase ("commissionable sales") and may be reduced or eliminated depending on the amount invested and the type of investor. Therefore, sales fees generally will change with the overall level of gross sales, the size of individual transactions, and the relative mix of sales between different share classes and types of investors.
 Our sponsored mutual funds generally pay us distribution fees in return for sales, marketing and distribution efforts on their behalf. The majority of our U.S. mutual funds, with the exception of certain money market funds and certain other funds specifically designed for purchase through separately managed account programs, have adopted distribution plans under Rule 12b-1 (the "Rule 12b-1 Plans") promulgated under the Investment Company Act of 1940. The Rule 12b-1 Plans permit the funds to pay us for marketing, marketing support, advertising, printing and sales promotion services relating to the distribution of their shares, subject to the Rule 12b-1 Plans' limitations on amounts based on daily average AUM. We earn distribution fees from our non-U.S. funds based on daily average AUM.
 Contingent sales charges are earned from investor redemptions within a contracted period of time. Substantially all of these charges are levied on certain shares sold without a front-end sales charge, and vary with the mix of redemptions of these shares.

 We pay substantially all of our sales and distribution fees to the financial advisers, broker-dealers and other intermediaries that sell our funds on our behalf. See the description of sales, distribution and marketing expenses below.
 Sales and distribution fees by revenue driver are presented below.

 2025
 2024
 2023

 Asset-based fees
 $
 1,219.5
 $
 1,135.1
 $
 998.0
 %
 %

 Sales-based fees
 255.2
 245.9
 205.7
 %
 %

 Sales and Distribution Fees
 $
 1,474.7
 $
 1,381.0
 $
 1,203.7
 %
 %

 Asset-based distribution fees increased $84.4 million in fiscal year 2025 primarily due to an increase of 4% in the related average AUM, one additional quarter of asset-based revenue related to Putnam products and a higher mix of non-U.S. equity and multi-asset funds, which generate higher fees.
 Sales-based fees increased $9.3 million in fiscal year 2025 primarily due to one additional quarter of sales-based revenue related to Putnam products and a higher mix of equity and multi-asset funds, which generate higher sales fees.

 Shareholder Servicing Fees
 Shareholder servicing fees are earned from our sponsored funds for providing transfer agency services, which include providing shareholder statements, transaction processing, client service and tax reporting. Shareholder servicing fees are determined based on a contractual margin, or a percentage of AUM and either the number of transactions in shareholder accounts or the number of shareholder accounts. Shareholder servicing fees also include fund reimbursements of expenses incurred while providing transfer agency services.
 Shareholder servicing fees increased $35.2 million in fiscal year 2025, primarily due to one additional quarter of fees earned by Putnam and higher levels of related AUM, partially offset by lower fees determined on a contractual margin.

 OPERATING EXPENSES
 The table below presents the percentage change in each operating expense category.

 2025
 2024
 2023

 Compensation and benefits
 $
 3,818.2
 $
 3,831.1
 $
 3,494.0
 %
 %

 Sales, distribution and marketing
 2,010.9
 1,863.1
 1,613.1
 %
 %

 Information systems and technology
 643.6
 620.1
 505.0
 %
 %

 Occupancy
 286.3
 325.4
 228.9
 (12
 %)
 %

 406.5
 338.2
 341.1
 %
 (1
 %)

 226.6
 389.2
 —
 (42
 %)
 %

 General, administrative and other
 774.5
 703.3
 565.0
 %
 %

 Total Operating Expenses
 $
 8,166.6
 $
 8,070.4
 $
 6,747.1
 %
 %

 The acquisition of Putnam on January 1, 2024 had a significant impact on operating expenses for the fiscal years ended September 30, 2025; however, due to the ongoing integration of the combined businesses, it is not practicable to separately quantify the impact of the legacy Putnam business.

 Compensation and Benefits
 The components of compensation and benefits expenses are presented below.

 2025
 2024
 2023

 Salaries, wages and benefits
 $
 1,724.0
 $
 1,686.6
 $
 1,499.5
 %
 %

 Incentive compensation
 1,676.6
 1,613.7
 1,532.1
 %
 %

 Acquisition-related retention1

 162.4
 263.6
 164.9
 (38
 %)
 %

 Acquisition-related performance fee pass through1

 106.7
 97.5
 169.7
 %
 (43
 %)

 Other1, 2

 148.5
 169.7
 127.8
 (12
 %)
 %

 Compensation and Benefits Expenses
 $
 3,818.2
 $
 3,831.1
 $
 3,494.0
 %
 %

 1 See "Supplemental Non-GAAP Financial Measures" for additional information.
 2 Includes impact of gains and losses on investments related to deferred compensation plans, which is offset in investment and other income (losses), net; minority interests in certain subsidiaries, which is offset in net income (loss) attributable to redeemable noncontrolling interests; and special termination benefits.
 Salaries, wages and benefits increased $37.4 million in fiscal year 2025 primarily due to annual salary increases and one additional quarter of expenses related to Putnam, partially offset by the impact of headcount reductions resulting from costs savings initiatives.
 Incentive compensation increased $62.9 million in fiscal year 2025, primarily due to higher bonus expense based on our annual performance, higher performance fee compensation, one additional quarter of expenses related to Putnam, higher annual acceleration of deferred compensation expense related to retirement-eligible employees and higher sales related commissions, partially offset by lower incentive compensation at certain specialist investment managers.
 Acquisition-related retention expenses decreased $101.2 million in fiscal year 2025, primarily due to lower costs associated with recent acquisitions.
 Other compensation and benefits decreased $21.2 million in fiscal year 2025, primarily due to lower net market gains on investments related to our deferred compensation plans and a decrease in special termination benefits, partially offset by an increase in compensation related to minority interests. Special termination benefits decreased $6.1 million primarily due to higher costs associated with workforce optimization initiatives in the prior year.
 At September 30, 2025, our global workforce decreased to approximately 9,800 employees from approximately 10,200 at September 30, 2024.
 We continue to place a high emphasis on our pay for performance philosophy. As such, any changes in the underlying performance of our investment products or changes in the composition of our incentive compensation offerings could have an impact on compensation and benefits expenses going forward. However, in order to attract and retain talented individuals, our level of compensation and benefit expenses may increase more quickly or decrease more slowly than our revenue.

 Sales, Distribution and Marketing
 Sales, distribution and marketing expenses primarily relate to services provided by financial advisers, broker-dealers and other intermediaries to our sponsored funds, including marketing support services. Substantially all distribution expenses are incurred from assets that generate distribution fees and are determined as a percentage of AUM. Substantially all sales expenses are incurred from the same commissionable sales transactions that generate sales fee revenues and are determined as a percentage of sales. Marketing support expenses are based on AUM, sales or a combination thereof. Also included is the amortization of deferred sales commissions related to upfront commissions on shares sold without a front-end sales charge. The deferred sales commissions are amortized over the periods in which commissions are generally recovered from related revenues.

 Sales, distribution and marketing expenses by cost driver are presented below.

 2025
 2024
 2023

 Asset-based expenses
 $
 1,685.3
 $
 1,569.6
 $
 1,368.1
 %
 %

 Sales-based expenses
 245.8
 231.5
 195.0
 %
 %

 Amortization of deferred sales commissions
 79.8
 62.0
 50.0
 %
 %

 Sales, Distribution and Marketing
 $
 2,010.9
 $
 1,863.1
 $
 1,613.1
 %
 %

 Asset-based expenses increased $115.7 million in fiscal year 2025 primarily due to one additional quarter of expenses related to Putnam products, an increase of 3% in the related average AUM and higher marketing support fees. Distribution expenses are generally not directly correlated with distribution fee revenues due to certain fee structures that do not provide full recovery of distribution costs.
 Sales-based expenses increased $14.3 million in fiscal year 2025 primarily due to one additional quarter of expenses related to Putnam products and higher marketing support fees.
 Amortization of deferred sales commissions increased $17.8 million in fiscal year 2025 primarily due to higher sales.

 Information Systems and Technology

 Information systems and technology expenses increased $23.5 million in fiscal year 2025, primarily due to one additional quarter of expenses incurred by Putnam, higher spending related to strategic initiatives, and higher costs for software and external data services, partially offset by lower costs for hardware maintenance and purchases.

 Occupancy
 Occupancy expenses decreased $39.1 million in fiscal year 2025. The prior year included the impairment of the right of use asset related to office space vacated in connection with the consolidation of our office space in New York City, and the current year reflects lower costs due to the office space consolidation. The decrease was partially offset by one additional quarter of expenses incurred by Putnam.

 Amortization of intangible assets increased $68.3 million in fiscal year 2025, primarily due to a reduction in the remaining useful life of definite-lived intangible assets related to WAM, partially offset by the effect of intangible assets which became fully amortized during the fiscal year.

 Impairment of intangible assets was $ 226.6 million in fiscal year 2025 and $ 389.2 million in fiscal year 2024. In fiscal year 2025, we impaired our indefinite-lived intangible asset related to certain contracts managed by WAM by $200.0 million, as compared to $389.2 million in fiscal year 2024. During fiscal year 2025, we also recognized impairment charges of $26.6 million related to certain other indefinite-lived intangible assets related to management contracts. See Critical Accounting Policies and Note 8 - Goodwill and Other Intangible Assets in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report for additional information.

 General, Administrative and Other
 General, administrative and other expenses primarily consist of professional fees, fund-related service fees, advertising and promotion, travel and entertainment, and other miscellaneous expenses. For certain vehicles, we may agree to compensate third parties for services provided by sharing a portion of the performance fees we earn. These payments are classified as sub-advisory expenses.

 General, administrative and other operating expenses increased $71.2 million in fiscal year 2025, primarily due to one additional quarter of expenses incurred by Putnam, and increases of $21.2 million in sub-advisory expenses, primarily due to higher payments to third-parties related to performance fees, $17.7 million in transfer agency expenses, $16.0 million in advertising and promotion costs, and $2.9 million in legal and other professional fees, inclusive of $65.6 million of insurance recoveries. These increases were partially offset by an $18.5 million decrease in acquisition-related costs, primarily related to the acquisition of Putnam.

 OTHER INCOME (EXPENSES)
 Other income (expenses) consisted of the following:

 2025
 2024
 2023

 Investment and other income, net:

 Dividend and interest income

 $
 141.4
 $
 176.9
 $
 159.9
 (20
 %)
 %

 Gains (losses) on investments, net
 (37.6)
 57.6
 39.5
 NM
 %

 Income from investments in equity method investees
 78.0
 137.5
 45.4
 (43
 %)
 %

 Losses on derivatives, net
 (7.8)
 (16.2)
 (15.1)
 (52
 %)
 %

 Rental income

 44.1
 43.7
 46.3
 %
 (6
 %)

 Foreign currency exchange losses, net
 (11.6)
 (19.9)
 (26.7)
 (42
 %)
 (25
 %)

 Other, net

 6.3
 15.9
 13.0
 (60
 %)
 %

 Investment and other income, net
 212.8
 395.5
 262.3
 (46
 %)
 %

 Interest expense
 (94.9)
 (97.2)
 (123.7)
 (2
 %)
 (21
 %)

 Investment and other income of consolidated investment products, net
 108.4
 149.9
 115.8
 (28
 %)
 %

 Expenses of consolidated investment products
 (43.6)
 (32.6)
 (18.7)
 %
 %

 Other income, net
 $
 182.7
 $
 415.6
 $
 235.7
 (56
 %)
 %

 Substantially all dividend income was generated by investments in nonconsolidated sponsored funds. Gains (losses) on investments, net consists primarily of realized and unrealized gains (losses) on equity securities measured at fair value.
 Dividend and interest income decreased $35.5 million in fiscal year 2025, primarily due to lower yields and lower average balances.
 Investments held by the Company generated net losses of $37.6 million, as compared to net gains of $57.6 million in the prior year. Net losses in the current year were primarily from investments measured at cost adjusted for observable price changes and investments in nonconsolidated funds and separate accounts, partially offset by gains on assets invested for deferred compensation plans. The net gains in the prior year were primarily from assets invested for deferred compensation plans and investments in nonconsolidated funds and separate accounts, partially offset by losses on investments measured at cost adjusted for observable price changes.
 Equity method investees generated income of $78.0 million in fiscal year 2025 and $137.5 million in fiscal year 2024, largely related to various global alternative and equity funds.
 Net foreign currency exchange losses decreased $8.3 million in fiscal year 2025, primarily due to the U.S. dollar weakening less in the current fiscal year against the British Pound, which resulted in lower foreign exchange losses on cash and cash equivalents denominated in U.S. dollars held by certain of our European subsidiaries.
 Interest expense decreased $2.3 million in fiscal year 2025 primarily due to lower accretion on Lexington deferred purchase consideration, partially offset by an increase in interest recognized on tax reserves.

 Investment and other income (loss) of consolidated investment products, net consists of investment gains (losses) on investments held by consolidated investment products ("CIPs") and dividend and interest income. Expenses of consolidated investment products primarily consists of fund-related expenses, including professional fees and other administrative expenses, and interest expense. Significant portions of the investment and other income of consolidated investment products, net and expenses of consolidated investment products are offset in noncontrolling interests in our consolidated statements of income.
 Investments held by CIPs generated investment and other income of $108.4 million in fiscal year 2025, as compared to investment and other income of $149.9 million in fiscal year 2024. The current year income was largely related to various global alternative, fixed income and multi-asset funds, partially offset by losses on global equity funds, while the prior year income was largely related to various equity, fixed income and multi-asset funds.
 Expenses of consolidated investment products increased $11.0 million in fiscal year 2025, due to activity of the funds.
 Our investments in sponsored funds include initial cash investments made in the course of launching mutual fund and other investment product offerings, as well as investments for other business reasons. The market conditions that impact our AUM similarly affect the investment income earned or losses incurred on our investments in sponsored funds.

 TAXES ON INCOME
 Our effective income tax rate for fiscal year 2025 was 30.2% as compared to 26.2% in fiscal year 2024. The rate increase in fiscal year 2025 was primarily due to a reduction in foreign rate benefits and activity of CIPs for which there is no related tax impact, partially offset by the release of valuation allowances for foreign tax credits and higher federal and state provision to return adjustments in the current year.
 On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law. While we are in the process of evaluating the impact of the Act on our consolidated financial statements, we do not expect there to be any material impact thereon.
 Our effective income tax rate reflects the relative contributions of earnings in the jurisdictions in which we operate, which have varying tax rates. Changes in our pre-tax income mix, tax rates or tax legislation in such jurisdictions may affect our effective income tax rate and net income.

 SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
 As supplemental information, we are providing performance measures for "adjusted operating income," "adjusted operating margin," "adjusted net income" and "adjusted diluted earnings per share," each of which is based on methodologies other than generally accepted accounting principles ("non-GAAP measures"). Management believes these non-GAAP measures are useful indicators of our financial performance and may be helpful to investors in evaluating our relative performance against industry peers.
 "Adjusted operating income," "adjusted operating margin," "adjusted net income" and "adjusted diluted earnings per share" are defined below, followed by reconciliations of operating income, operating margin, net income attributable to Franklin Resources, Inc. and diluted earnings per share on a U.S. GAAP basis to these non-GAAP measures. Non-GAAP measures should not be considered in isolation from, or as substitutes for, any financial information prepared in accordance with U.S. GAAP, and may not be comparable to other similarly titled measures of other companies. Additional reconciling items may be added in the future to these non-GAAP measures if deemed appropriate.
 Adjusted Operating Income
 We define adjusted operating income as operating income adjusted to exclude the following:
 • Elimination of operating revenues upon consolidation of investment products.
 • Acquisition-related items:
 Acquisition-related retention compensation.

 Other acquisition-related expenses including professional fees, technology costs and fair value adjustments related to contingent consideration assets and liabilities.
 Amortization of intangible assets.
 Impairment of intangible assets and goodwill, if any.
 • Special termination benefits and other expenses related to workforce optimization initiatives related to past acquisitions and certain initiatives undertaken by the Company.
 • Impact on compensation and benefits expense from gains and losses on investments related to deferred compensation plans, which is offset in investment and other income (losses), net.
 • Impact on compensation and benefits expense related to minority interests in certain subsidiaries, which is offset in net income (loss) attributable to redeemable noncontrolling interests.
 Adjusted Operating Margin
 We calculate adjusted operating margin as adjusted operating income divided by adjusted operating revenues. We define adjusted operating revenues as operating revenues adjusted to exclude the following:
 • Elimination of operating revenues upon consolidation of investment products.
 • Acquisition-related performance-based investment management fees which are passed through as compensation and benefits expense.
 • Sales and distribution fees and a portion of investment management fees allocated to cover sales, distribution and marketing expenses paid to the financial advisers and other intermediaries who sell our funds on our behalf.
 Adjusted Net Income and Adjusted Diluted Earnings Per Share
 We define adjusted net income as net income attributable to Franklin Resources, Inc. adjusted to exclude the following:
 • Activities of CIPs.
 • Acquisition-related items:
 Acquisition-related retention compensation.
 Other acquisition-related expenses including professional fees, technology costs and fair value adjustments related to contingent consideration assets and liabilities.
 Amortization of intangible assets.
 Impairment of intangible assets and goodwill, if any.
 Interest expense for amortization of debt premium from acquisition-date fair value adjustment.
 • Special termination benefits and other expenses related to workforce optimization initiatives related to past acquisitions and certain initiatives undertaken by the Company.
 • Net gains or losses on investments related to deferred compensation plans which are not offset by compensation and benefits expense.
 • Net compensation and benefits expense related to minority interests in certain subsidiaries not offset by net income (loss) attributable to redeemable noncontrolling interests.
 • Unrealized investment gains and losses.
 • Net income tax expense of the above adjustments based on the respective blended rates applicable to the adjustments.

 We define adjusted diluted earnings per share as diluted earnings per share adjusted to exclude the per share impacts of the adjustments applied to net income in calculating adjusted net income.
 In calculating our non-GAAP measures, we adjust for the impact of CIPs because it is not considered reflective of our underlying results of operations. Acquisition-related items and special termination benefits are excluded to facilitate comparability to other asset management firms. We adjust for compensation and benefits expense related to funded deferred compensation plans because it is partially offset in other income (expense), net. We adjust for compensation and benefits expense and net income (loss) attributable to redeemable noncontrolling interests to reflect the economics of certain profits interest arrangements. Sales and distribution fees and a portion of investment management fees generally cover sales, distribution and marketing expenses and, therefore, are excluded from adjusted operating revenues. In addition, when calculating adjusted net income and adjusted diluted earnings per share we exclude unrealized investment gains and losses included in investment and other income (losses) because the related investments are generally expected to be held long term.

 The calculations of adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share are as follows:

 2025
 2024
 2023

 Operating income
 $
 604.1
 $
 407.6
 $
 1,102.3

 Add (subtract):

 Elimination of operating revenues upon consolidation of investment products
 50.7
 47.4
 37.5

 Acquisition-related retention

 162.4
 263.6
 164.9

 Compensation and benefits expense from gains on deferred compensation, net
 23.4
 50.5
 20.3

 Other acquisition-related expenses
 41.4
 97.4
 50.2

 406.5
 338.2
 341.1

 226.6
 389.2
 —

 Special termination benefits

 69.7
 75.8
 63.2

 Compensation and benefits expense related to minority interests in certain subsidiaries
 55.4
 43.4
 44.3

 Adjusted operating income
 $
 1,640.2
 $
 1,713.1
 $
 1,823.8

 Total operating revenues
 $
 $
 $

 Add (subtract):

 Acquisition-related pass through performance fees

 (109.4)
 (97.5)
 (169.7)

 (1,474.7)
 (1,381.2)
 (1,203.7)

 Allocation of investment management fees for sales, distribution and marketing expenses

 (536.2)
 (481.9)
 (409.4)

 Elimination of operating revenues upon consolidation of investment products
 50.7
 47.4
 37.5

 Adjusted operating revenues
 $
 6,701.1
 $
 6,564.8
 $
 6,104.1

 Operating margin
 6.9
 %
 4.8
 %
 14.0
 %

 Adjusted operating margin
 24.5
 %
 26.1
 %
 29.9
 %

 (in millions, except per share data)
 2025
 2024
 2023

 Net income attributable to Franklin Resources, Inc.
 $
 524.9
 $
 464.8
 $
 882.8

 Add (subtract):

 Net (income) loss of consolidated investment products
 7.6
 (3.9)
 8.0

 Acquisition-related retention

 162.4
 263.6
 164.9

 Other acquisition-related expenses
 61.6
 107.0
 70.4

 406.5
 338.2
 341.1

 226.6
 389.2
 —

 Special termination benefits

 69.7
 75.8
 63.2

 Net gains on deferred compensation plan investments not offset by compensation and benefits expense
 (3.3)
 (13.9)
 (15.5)

 Unrealized investment gains
 (57.7)
 (51.5)
 (2.6)

 Interest expense for amortization of debt premium

 (19.9)
 (24.4)
 (25.4)

 Net compensation and benefits expense related to minority interests in certain subsidiaries not offset by net income attributable to redeemable noncontrolling interests
 26.4
 3.5
 0.1

 Net income tax expense of adjustments
 (209.0)
 (271.7)
 (154.8)

 Adjusted net income
 $
 1,195.8
 $
 1,276.7
 $
 1,332.2

 Diluted earnings per share
 $
 0.91
 $
 0.85
 $
 1.72

 Adjusted diluted earnings per share

 2.22
 2.39
 2.60

 1The impact of consolidated investment products is summarized as follows:

 2025
 2024
 2023

 Elimination of operating revenues upon consolidation
 $
 (50.7)
 $
 (47.4)
 $
 (37.5)

 Other income, net
 11.0
 104.5
 88.8

 Less: income (loss) attributable to noncontrolling interests
 (32.1)
 53.2
 59.3

 Net income (loss)
 $
 (7.6)
 $
 3.9
 $
 (8.0)

 LIQUIDITY AND CAPITAL RESOURCES
 Cash flows were as follows:

 2025
 2024
 2023

 Operating cash flows
 $
 1,066.1
 $
 971.3
 $
 1,089.2

 Investing cash flows
 (2,342.7)
 (2,423.7)
 (3,610.3)

 Financing cash flows
 452.4
 1,415.6
 2,106.7

 Net cash provided by operating activities increased in fiscal year 2025 primarily due to higher net income adjusted for non-cash items and an increase in accounts payable and accrued expenses, partially offset by higher payments for incentive compensation and income taxes. Net cash used in investing activities decreased as compared to the prior year primarily due to lower net purchases of investments by collateralized loan obligations ("CLOs") and lower payments of deferred consideration liabilities in the current year offset by net purchases of our investments as compared to net liquidations in the prior year and net impact of an acquisition in the prior year. Net cash provided by financing activities decreased as compared to the prior year primarily due to lower net proceeds on debt of CIPs and net repayment of debt, partially offset by net proceeds from repurchase agreements.

 The assets and liabilities of CIPs attributable to third-party investors do not impact our liquidity and capital resources. We have no right to the CIPs' assets, other than our direct equity investment in them and investment management and other fees earned from them. The debt holders of the CIPs have no recourse to our assets beyond the level of our direct investment, therefore we bear no other risks associated with the CIPs' liabilities. Accordingly, the assets and liabilities of CIPs, other than our direct investments in them, are excluded from the amounts and discussion below.
 Our liquid assets and debt consisted of the following:

 2025
 2024
 2023

 $
 3,050.1
 $
 3,261.1
 $
 3,592.8

 Receivables
 1,228.6
 1,261.6
 1,181.7

 1,367.5
 1,141.7
 1,098.8

 Total Liquid Assets
 $
 5,646.2
 $
 5,664.4
 $
 5,873.3

 Liability

 Debt
 $
 2,362.0
 $
 2,780.3
 $
 3,052.8

 Liquidity
 Liquid assets consist of cash and cash equivalents, receivables and certain investments. Cash and cash equivalents at September 30, 2025 primarily consist of money market funds and deposits with financial institutions. Liquid investments consist of investments in sponsored and other funds, direct investments in redeemable CIPs, other equity and debt securities, and time deposits with maturities greater than three months.
 We utilize a significant portion of our liquid assets to satisfy operational and regulatory requirements and fund capital contributions to sponsored and other products. Certain of our subsidiaries are required by our internal policy or regulation to maintain minimum levels of cash and/or capital, and may be restricted in their ability to transfer cash to their parent companies. Should we require more capital than is available for use, we could elect to reduce the level of discretionary activities, such as share repurchases or investments in sponsored and other products, we could raise capital through debt or equity issuances, or utilize existing or new credit facilities. These alternatives could result in increased interest expense, decreased dividend or interest income, or other dilution to our earnings.
 Capital Resources
 We believe that we can meet our present and reasonably foreseeable operating cash needs and future commitments through existing liquid assets, continuing cash flows from operations, amounts available under the credit facility discussed below, the ability to issue debt or equity securities and borrowing capacity under our uncommitted commercial paper private placement program.
 In prior fiscal years, we issued senior unsecured unsubordinated notes for general corporate purposes and to redeem outstanding notes. At September 30, 2025, Franklin's outstanding senior notes had an aggregate principal amount due of $1,200.0 million. The notes have fixed interest rates from 1.600% to 2.950% with interest paid semi-annually and have an aggregate carrying value, inclusive of unamortized discounts and debt issuance costs, of $1,188.5 million. At September 30, 2025, Legg Mason's outstanding senior notes had an aggregate principal amount due of $1,000.0 million. The notes have fixed interest rates from 4.750% to 5.625% with interest paid semi-annually and have an aggregate carrying value, inclusive of unamortized premium, of $1,173.5 million. The $400.0 million 2.850% senior notes due March 2025 were repaid on March 31, 2025 using existing cash and borrowings from our revolving credit facility.
 The senior notes contain an optional redemption feature that allows us to redeem each series of notes prior to maturity in whole or in part at any time, at a make-whole redemption price. The indentures governing the senior notes contain limitations on our ability and the ability of our subsidiaries to pledge voting stock or profit participating equity interests in our subsidiaries to secure other debt without similarly securing the notes equally and ratably. In addition, the indentures include requirements that must be met if we consolidate or merge with, or sell all of our assets to, another entity.

 On April 30, 2025, we entered into an Amended and Restated Revolving Credit Agreement (the "Amended and Restated Credit Agreement") with a five-year term and $1.1 billion of aggregate available borrowings. As of April 30, 2025, the $300.0 million of borrowings outstanding under our prior credit facility were transferred to the Amended and Restated Credit Agreement. Interest is payable semi-annually on any outstanding amounts and is based on the Term Secured Overnight Financing Rate ("Term SOFR") plus a credit spread of 87.5 basis points and a Term SOFR adjustment of 10 basis points. On September 5, 2025, the Company repaid all of the outstanding $300.0 million borrowings at the principal amount plus accrued interest of $5.5 million. The Amended and Restated Credit Agreement contains a financial performance covenant requiring that the Company maintain a consolidated net leverage ratio, measured as of the last day of each fiscal quarter, of no greater than 3.25 to 1.00. We were in compliance with all debt covenants at September 30, 2025.
 At September 30, 2025, we had $500.0 million of short-term commercial paper available for issuance under an uncommitted private placement program which has been inactive since 2012 and is unrated.
 Our ability to access the capital markets in a timely manner depends on a number of factors, including our credit rating, the condition of the global economy, investors' willingness to purchase our securities, interest rates, credit spreads and the valuation levels of equity markets. If we are unable to access capital markets in a timely manner, our business could be adversely impacted.
 Uses of Capital
 We expect that our main uses of cash will be to invest in and grow our business including through acquisitions, pay stockholder dividends, invest in our products, pay income taxes and expenses of the business, enhance technology infrastructure and business processes, repurchase shares of our common stock, and repay and service debt. While we expect to continue to repurchase shares to offset dilution from stock-based compensation, and expect to continue to repurchase shares opportunistically from time to time, we will likely spend more of our post-dividend free cash flow investing in our business, including seed capital and acquiring resources to help grow our investment teams and operations.
 In the ordinary course of business, we enter into contracts or purchase obligations with third parties whereby the third parties provide goods or services to or on behalf of the Company. Purchase obligations include contractual amounts that will be due to purchase goods and services to be used in our operations and are recorded as liabilities in the consolidated financial statements when services are provided. At September 30, 2025, we had $972.8 million of purchase obligations.
 We typically declare cash dividends on a quarterly basis, subject to approval by our Board of Directors. We declared regular dividends of $1.28 per share ($0.32 per share per quarter) in fiscal year 2025, and of $1.24 per share ($0.31 per share per quarter) in fiscal year 2024. We currently expect to continue paying comparable regular dividends on a quarterly basis to holders of our common stock depending upon earnings and other relevant factors.
 We maintain a stock repurchase program to manage our equity capital with the objective of maximizing shareholder value. Our stock repurchase program is effected through open-market purchases and private transactions in accordance with applicable laws and regulations, and is not subject to an expiration date. The size and timing of these purchases will depend on business conditions, price, market and other factors, including the terms of any 10b5-1 stock purchase plan that may be in effect at any given time. During fiscal years 2025 and 2024, we repurchased 10.7 million and 12.0 million shares of our common stock at a cost of $240.3 million and $274.4 million. In December 2023, our Board of Directors authorized the repurchase of up to an additional 27.2 million shares of our common stock in either open market or private transactions, for a total of up to 40.0 million shares available for repurchase under the stock repurchase program as of such authorization date. At September 30, 2025, 19.2 million shares remained available for repurchase under this authorization.
 On October 1, 2025, we completed the acquisition of Apera Asset Management for cash consideration of 65.2 million net of closing adjustments funded from existing cash. In addition, we will pay up to 125.0 million in cash through the fifth anniversary of the closing date based on achieving revenue targets.
 We will pay up to $375.0 million related to our acquisition of Putnam between the third and seventh anniversaries of the closing date related to revenue growth targets from the strategic partnership with Great-West Lifeco, Inc. which will be recognized in operating income.
 The final deferred cash payment related to our acquisition of Lexington of $100.0 million was paid on April 1, 2025 using existing cash and borrowings from our revolving credit facility.

 While we have no legal or contractual obligation to do so, we routinely make cash investments in the course of launching sponsored funds. The funds that we manage have their own resources available for purposes of providing liquidity to meet shareholder redemptions, including securities that can be sold or provided to investors as in-kind redemptions, and lines of credit. Increased liquidity risks and redemptions have required, and may continue to require, increased cash in the form of loans or other lines of credit to help settle redemptions and for other related purposes. We have in certain instances voluntarily elected to provide the funds with direct or indirect financial support based on our business objectives. We did not provide significant financial or other support to our sponsored funds during fiscal year 2025 or 2024.
 At September 30, 2025, we had $520.8 million of committed capital contributions which relate to commitments to invest in sponsored funds and other investment products and entities, including CIPs. These unfunded commitments are not recorded in the consolidated balance sheet.
 Our cash, cash equivalents and investments portfolio by asset class and accounting classification at September 30, 2025, excluding third-party assets of CIPs, was as follows:

 Accounting Classification 1

 Total

 Cash and Cash Equivalents
 Investments,
at
 Equity Method Investments
 Other
 Direct Investments
in CIPs

 Cash and Cash Equivalents
 $
 $
 —
 $
 —
 $
 —
 $
 —
 $

 —
 538.9
 711.1
 97.3
 681.3
 2,028.6

 —
 358.0
 150.7
 167.6
 272.7
 949.0

 —
 229.0
 20.8
 35.7
 137.7
 423.2

 —
 53.6
 11.3
 —
 128.9
 193.8

 Total investments
 —
 1,179.5
 893.9
 300.6
 1,220.6
 3,594.6

 Total Cash and Cash Equivalents and Investments 2, 3

 $
 $
 1,179.5
 $
 893.9
 $
 300.6
 $
 1,220.6
 $
 6,682.7

 ______________
 1See Note 1 – Significant Accounting Policies and Note 5 – Investments in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report for information on investment accounting classifications.
 2Total cash and cash equivalents and investments includes $4,591.8 million maintained for operational activities, including investments in sponsored funds and other products and $458.5 million necessary to comply with regulatory requirements.
 3Total cash and cash equivalents and investments includes approximately $350 million attributable to employee-owned and other third-party investments made through partnerships which are offset in noncontrolling interests, approximately $394 million of investments that are subject to long-term repurchase agreements and other net financing arrangements, and approximately $455 million of cash and investments related to deferred compensation plans.

 CRITICAL ACCOUNTING POLICIES AND ESTIMATES
 Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. These estimates, judgments, and assumptions are affected by our application of accounting policies. Further, concerns about the global economic outlook have adversely affected and may continue to adversely affect our business, financial condition and results of operations including the estimates and assumptions made by management. Actual results could differ from the estimates. Described below are the accounting policies that we believe are most critical to understanding our financial position and results of operations. For additional information about our accounting policies, see Note 1 – Significant Accounting Policies in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report.

 Consolidation
 We consolidate our subsidiaries and investment products in which we have a controlling financial interest. We have a controlling financial interest when we own a majority of the voting interest in a voting interest entity ("VOE") or are the primary beneficiary of a variable interest entity ("VIE").
 A VIE is an entity in which the equity investment holders have not contributed sufficient capital to finance its activities or do not have defined rights and obligations normally associated with an equity investment. The assessment of whether an entity is a VIE or VOE involves judgment and analysis on a structure-by-structure basis. When performing the assessment, we consider factors such as the entity's legal organization, design and capital structure, the rights of the equity investment holders and our contractual involvement with and ownership interest in the entity. Our VIEs are primarily investment products and our variable interests consist of our equity ownership interests in and investment management fees earned from these products.
 We are the primary beneficiary of a VIE if we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses of or right to receive benefits from the VIE that could potentially be significant to the VIE. Investment management fees earned from VIEs are excluded from the primary beneficiary determination if they are deemed to be at market and commensurate with service. The key assumption used in the analysis includes the amount of AUM. These estimates and assumptions are subject to variability. For example, AUM is impacted by market volatility and the level of sales, redemptions, distributions to investors and reinvested distributions. There is judgment involved in assessing whether we have the power to direct the activities that most significantly impact VIEs' economic performance and the obligation to absorb losses of or right to receive benefits from VIEs that could potentially be significant to the VIEs.
 Business Combinations
 Business combinations are accounted for by recognizing the acquired assets, including separately identifiable intangible assets, and assumed liabilities at their acquisition-date estimated fair values. Any excess of the purchase consideration over the acquisition-date fair values of these identifiable assets and liabilities is recognized as goodwill. Determining the fair value of assets acquired and liabilities assumed involves the use of significant estimates and assumptions. During the measurement period, which is not to exceed one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in earnings.
 Intangible assets acquired in business combinations consist primarily of investment management contracts and trade names. The fair values of the acquired management contracts are based on the net present value of estimated future cash flows attributable to the contracts, which include significant assumptions about the AUM growth rate, pre-tax profit margin, discount rate, average effective fee rate and effective tax rate. The fair value of trade names is determined using the relief from royalty method based on net present value of estimated future cash flows, which include significant assumptions about royalty rate, revenue growth rate, discount rate and effective tax rate. Our estimates are based on assumptions believed to be reasonable, but are inherently uncertain and unpredictable and, as a result, may differ from actual results.
 Our management contract intangible assets are amortized over their estimated useful lives, which range from three to sixteen years, using the straight-line method, unless the asset is determined to have an indefinite useful life as there is no foreseeable limit on the contract period. Trade names are amortized over their estimated useful lives which range from five to twenty years using the straight-line method.
 Goodwill and indefinite-lived intangible assets are tested for impairment annually and when an event occurs or circumstances change that more likely than not reduce the fair value of the related reporting unit or indefinite-lived intangible asset below its carrying value. We have one reporting unit, investment management and related services, consistent with our single operating segment, to which all goodwill has been assigned. We make significant estimates and assumptions when evaluating goodwill and other intangible assets for impairment.

 We may first assess goodwill and indefinite-lived intangible assets using qualitative factors to determine whether it is necessary to perform a quantitative impairment test. The qualitative analysis considers entity-specific and macroeconomic factors and their potential impact on key assumptions used in the determination of the fair value of the reporting unit or indefinite-lived intangible asset. A quantitative impairment test is performed if the results of the qualitative assessment indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value or an indefinite-lived intangible asset is impaired, or if a qualitative assessment is not performed. Quantitative tests compare the fair value of the asset to its carrying value.
 The fair values of the reporting unit and indefinite-lived intangible assets are based on the net present value of estimated future cash flows, which include significant assumptions about the AUM growth rate, pre-tax profit margin, discount rate, average effective fee rate and effective tax rate. The most relevant of these assumptions to the determination of estimated fair value are the AUM growth rate, pre-tax profit margin and the discount rate.
 During fiscal year 2025, we identified indicators that the fair value of certain indefinite-lived intangible assets were below their carrying value related to acquired mutual fund investment management contracts triggered by decreased AUM in related products and recognized an impairment of $24.4 million.
 We performed our annual impairment tests for goodwill and indefinite-lived intangible assets as of August 1, 2025. We performed a qualitative assessment of the valuation of goodwill and the majority of our indefinite-lived intangible assets in which we concluded it was more likely than not that the fair values of the reporting unit and the specific indefinite-lived intangible assets exceed their carrying values. We performed a quantitative test for the indefinite-lived intangible asset related to certain contracts managed by Western Asset and recognized a $200.0 million impairment, primarily due to a decline in expected future growth rates and profit margins in the related AUM based on a shift to lower fee products resulting in lower discounted future cash flows generated from these management contracts. The most relevant assumptions used in the test were the AUM growth rates and the pre-tax profit margins associated with these management contracts. The AUM growth rates used in the analysis ranged from 2.5% to 3.1% over the forecasted period and pre-tax profit margins were between 21.3% and 34.0%. The impairment does not impact our liquidity or capital resources.
 We performed a sensitivity analysis over the critical assumptions used in the impairment test. A decrease in the AUM growth rate of 50 basis points would result in an increase in the impairment charge of approximately $21 million. A decrease in the terminal pre-tax profit margin to 30% would increase the impairment charge by approximately $34 million.
 We subsequently monitored market conditions and their potential impact on the assumptions used in the annual assessment to determine whether circumstances had changed that would more likely than not reduce the fair value of the reporting unit below its carrying value, or indicate that the other indefinite-lived intangible assets were more likely than not impaired. We considered, among other things, changes in our AUM and weighted-average cost of capital by assessing whether these changes would impact the reasonableness of our impairment assessment as of August 1, 2025. We also monitored fluctuations of our common stock per share price to evaluate our market capitalization relative to the reporting unit as a whole.
 Subsequent to August 1, 2025, there were no impairments of goodwill or indefinite-lived assets as no events occurred or circumstances changed that would indicate these assets were more likely than not impaired.
 We test definite-lived intangible assets for impairment quarterly. Impairment is indicated when the carrying value of an asset is not recoverable and exceeds its fair value. Recoverability is evaluated based on estimated undiscounted future cash flows using assumptions about the AUM growth rate, pre-tax profit margin, average effective fee rate, and expected useful life. We also use a royalty rate for trade name intangible assets. The most relevant of these assumptions to determine future cash flows is the AUM growth rate. If the carrying value of an asset is not recoverable through undiscounted cash flows, impairment is recognized in the amount by which the carrying value exceeds the asset's fair value, as determined by discounted cash flows or other methods as appropriate for the asset type. Due to accelerated net outflows in certain Brandywine, Martin Currie, and WAM managed accounts, the Company revised the remaining useful life of the related definite-lived intangible asset, resulting in a cumulative weighted-average remaining useful life of 8.6 years for all definite-lived intangible assets as of September 30, 2025.

 During fiscal year 2025, the Company also reclassified certain indefinite-lived intangible assets to definite lived intangible assets and shortened the useful lives of certain definite-lived intangible assets related to trade names, primarily due to the planned retirement of the related brand names and ongoing integration initiatives. The affected assets were evaluated for impairment immediately prior to reclassification and are being amortized prospectively over their revised estimated remaining useful lives. There were no significant impairments of definite-lived intangible assets during fiscal year 2025.
 While we believe that the assumptions used to estimate fair value in our impairment tests are reasonable and appropriate, future changes in the assumptions or occurrence of future events could result in recognition of additional impairment. Such events may include, but are not limited to, the impact of the global economic environment on the Company's AUM, other material negative changes in AUM and related fees, or a significant and sustained decline in our stock price.
 Fair Value Measurements
 Our investments are primarily recorded at fair value or amounts that approximate fair value on a recurring basis. We use a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The assessment of the hierarchy level of the assets or liabilities measured at fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. See Note 1 – Significant Accounting Policies in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report for more information on the fair value hierarchy.
 As of September 30, 2025, Level 3 assets represented 4% of total assets measured at fair value, substantially all of which related to CIPs' investments in equity and debt securities. There were insignificant transfers into and $39.3 million transfers out of Level 3 during fiscal year 2025.
 The following are descriptions of the significant assets measured at fair value and their fair value methodologies.
 Sponsored funds and separate accounts consist primarily of investments in nonconsolidated sponsored funds and to a lesser extent, separate accounts. Changes in the fair value of the investments are recognized as gains and losses in earnings. The fair values of fund products are determined based on their published NAV or estimated using NAV as a practical expedient. The fair values of the underlying investments in the separate accounts are determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available.
 Investments related to long-term incentive plans consist primarily of investments in sponsored funds related to certain compensation plans that have certain vesting provisions. Changes in fair value are recognized as gains and losses in earnings. The fair values of the investments are determined based on the fund products' published NAV or estimated using NAV as a practical expedient.
 Other equity and debt investments consist of other equity and debt securities carried at fair value. Changes in the fair value are recognized as gains and losses in earnings. The fair values of equity securities, excluding fund products, and debt securities are determined using independent third-party broker or dealer price quotes or based on either a market-based or income-based approach using significant unobservable inputs. The fair values of fund products are determined based on their published NAV or estimated using NAV as a practical expedient.
 Investments of CIPs consist of marketable debt and equity securities and other investments that are not generally traded in active markets. Changes in the fair value of the investments are recognized as gains and losses in earnings. The fair values of marketable securities are determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. The investments that are not generally traded in active markets consist of loans, other equity and debt securities of entities in emerging markets, fund products and real estate. The fair values are determined using significant unobservable inputs in either a market-based or income-based approach, except for fund products, for which fair values are estimated using NAV as a practical expedient.

 Noncontrolling interests consist of third-party equity interests in CIPs and minority interests in certain subsidiaries. Noncontrolling interests that are redeemable or convertible for cash or other assets at the option of the noncontrolling interest holders and are classified as temporary equity at fair value, except when the fair value is less than the issuance date fair value, the reported amount is the issuance date fair value. Changes in fair value of redeemable noncontrolling interest is recognized as an adjustment to retained earnings. Nonredeemable noncontrolling interests do not permit the noncontrolling interest holders to request settlement, are reported at their issuance value and undistributed net income (loss) attributable to noncontrolling interests.
 The fair value of third-party equity interests in CIPs are determined based on the published NAV or estimated using NAV a practical expedient. The fair values of redeemable noncontrolling interests related to minority interest in certain subsidiaries are determined using discounted cash flows and guideline public company methods, which include significant assumptions about forecasts of the AUM growth rate, pre-tax profit margin, discount rate and public company earnings multiples.
 Revenues
 We earn revenue primarily from providing investment management and related services to our customers, which are generally investment products or investors in separate accounts. Related services include fund administration, sales and distribution, and shareholder servicing. Revenues are recognized when our obligations related to the services are satisfied and it is probable that a significant reversal of the revenue amount would not occur in future periods. The obligations are satisfied over time as the services are rendered, except for the sales and distribution obligations for the sale of shares of sponsored funds, which are satisfied on trade date. Multiple services included in customer contracts are accounted for separately when the obligations are determined to be distinct.
 Fees from providing investment management and fund administration services ("investment management fees"), other than performance-based investment management fees, are determined based on a percentage of AUM, primarily on a monthly basis using daily average AUM, and are recognized as the services are performed over time. Performance-based investment management fees are generated when investment products' performance exceeds targets established in customer contracts. These fees are recognized when significant reversal of the amount is no longer probable and may relate to investment management services that were provided in prior periods.
 Sales and distribution fees primarily consist of upfront sales commissions and ongoing distribution fees. Sales commissions are based on contractual rates for sales of certain classes of sponsored funds and are recognized on trade date. Distribution service fees are determined based on a percentage of AUM, primarily on a monthly basis using daily average AUM. As the fee amounts are uncertain on trade date, they are recognized over time as the amounts become known and may relate to sales and distribution services provided in prior periods.
 AUM is generally based on the fair value of the underlying securities held by investment products and is calculated using fair value methods derived primarily from unadjusted quoted market prices, unadjusted independent third-party broker or dealer price quotes in active markets, or market prices or price quotes adjusted for observable price movements after the close of the primary market. The fair values of securities for which market prices are not readily available are valued internally using various methodologies which incorporate significant unobservable inputs as appropriate for each security type. Pricing of the securities is governed by our global valuation and pricing policy, which defines valuation and pricing conventions for each security type, including practices for responding to unexpected or unusual market events.
 As our AUM is primarily valued based on observable market prices or inputs, market risk is the most significant risk underlying the valuation of our AUM.

 Income Taxes
 Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and the reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year when the reported amount of the asset or liability is expected to be recovered or settled, respectively. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying values of deferred tax assets to the amount that is more likely than not to be realized. In assessing whether a valuation allowance should be established against a deferred tax asset, we consider all positive and negative evidence, which includes timing of expiration, projected sources of taxable income, limitations on utilization under the statute and the effectiveness of prudent and feasible tax planning strategies among other factors. For each tax position taken or expected to be taken in a tax return, we utilize significant judgment related to the range of possible favorable or unfavorable outcomes to determine whether it is more likely than not that the position will be sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation. A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement.
 We operate in numerous countries, states and other taxing jurisdictions. The income tax laws are complex and subject to different interpretations by the taxpayer and the relevant taxing authorities. Significant judgment is required in the determination of our annual income tax provisions, which includes the assessment of deferred tax assets and uncertain tax positions, as well as the interpretation and application of existing and newly enacted tax laws, regulation changes, and new judicial rulings. We repatriate foreign earnings that are in excess of regulatory, capital or operational requirements of all of our non-U.S. subsidiaries.
 It is possible that actual results will vary from those recognized in our consolidated financial statements due to changes in the interpretation of applicable guidance or as a result of examinations by taxing authorities.
 Loss Contingencies
 We are involved in various lawsuits and claims encountered in the normal course of business. When such a matter arises and periodically thereafter, we consult with our legal counsel and evaluate the merits of the claims based on the facts available at that time. In management's opinion, an adequate accrual has been made as of September 30, 2025 to provide for any probable losses that may arise from such matters for which we could reasonably estimate an amount. See also Note 15 – Commitments and Contingencies in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report.

 Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
 In the normal course of business, our financial position is subject to market risk, including, but not limited to, potential loss due to changes in the value of financial instruments including those resulting from adverse changes in interest rates, foreign currency exchange rates and market valuation. Financial instruments include, but are not limited to, investment securities and debt obligations. Management is responsible for managing market risk. Our Enterprise Risk Management Committee is responsible for providing a framework to assist management to identify, assess and manage market and other risks.
 Our market risk from assets and liabilities of CIPs is limited to that of our direct equity investments in them and investment management fees earned from them. Accordingly, the assets and liabilities of CIPs are excluded from the discussion below.
 AUM Market Price Risk
 We are exposed to market risk through our investment management and distribution fees, which are generally calculated as a percentage of AUM. Changes in market prices, interest rates, credit spreads, foreign exchange rates, or a combination of these factors could cause the value of AUM to decline, which would result in lower investment management and distribution fees. Our exposure to these risks is reduced as we sponsor a broad range of investment products in various global jurisdictions, which serves to mitigate the impact of changes in any particular market or region.
 Assuming the respective effective fee rates and asset mix remain unchanged, a proportional 10% change in the value of our average AUM would result in corresponding 10% changes in our investment management fees, excluding performance-based investment management fees and asset-based distribution fee revenues. Such a change for the fiscal year ended September 30, 2025 would have resulted in an increase or decrease in operating revenues of $772.7 million.
 Interest Rate Risk
 We are exposed to changes in interest rates primarily through our investments in funds that invest in debt securities, which were $2,645.6 million at September 30, 2025. Our exposure to interest rate risks from these investments is mitigated by the low average duration exposure and a broad range of products in various global jurisdictions. We had no exposure to changes in interest rates from debt obligations at September 30, 2025 as all of our outstanding debt was issued at fixed rates. Any borrowings under the Amended and Restated Credit Agreement would bear interest at variable rates.
 As of September 30, 2025, we have considered the potential impact of a 100 basis point movement in market interest rates on our investments in funds that invest in debt securities. Based on our analysis, we do not expect that such a change would have a material impact on our earnings in the next 12 months.
 Foreign Currency Exchange Risk
 We are subject to foreign currency exchange risk through our international operations. While the majority of our revenues are earned in the U.S., we also provide services and earn revenue in international jurisdictions. Our exposure to foreign currency exchange risk is reduced in relation to our results of operations since a significant portion of these revenues is denominated in U.S. dollars. This situation may change in the future as our business continues to grow outside the U.S. and expenses incurred denominated in foreign currencies increase.
 The exposure to foreign currency exchange risk in our consolidated balance sheet mostly relates to cash and cash equivalents and investments that are denominated in foreign currencies, primarily in the Euro, Indian Rupee, Pound Sterling, Chinese Yuan and Australian dollar. These assets accounted for 27% of the total cash and cash equivalents and investments at September 30, 2025.
 A 10% weakening of the U.S. dollar against the various foreign currencies to which we had exposure as described above would result in corresponding 10% increases in the U.S. dollar values of the foreign currency assets and 10% decreases in the foreign currency values of the U.S. dollar assets. Such a weakening as of September 30, 2025 would result in a $118.4 million decrease in accumulated other comprehensive loss and a $0.2 million decrease in pre-tax earnings. We generally do not use derivative financial instruments to manage foreign currency exchange risk exposure. As a result, both positive and negative currency fluctuations against the U.S. dollar may affect our results of operations and accumulated other comprehensive income (loss).

 Market Valuation Risk
 We are exposed to market valuation risks related to securities we hold that are carried at fair value. To mitigate the risks we maintain a diversified investment portfolio and, from time to time, we may enter into derivative agreements.
 The following is a summary of the effect of a 10% increase or decrease in the carrying values of our financial instruments subject to market valuation risks at September 30, 2025. If such a 10% increase or decrease in carrying values were to occur, the changes from investments measured at fair value and direct investments in CIPs would result in a $240.1 million increase or decrease in our pre-tax earnings.

 Carrying Value
 Carrying Value
Assuming a 10% Increase
 Carrying Value
Assuming a 10% Decrease

 $
 1,179.5
 $
 1,297.5
 $
 1,061.6

 Direct investments in CIPs
 1,220.6
 1,342.7
 1,098.5

 Total
 $
 2,400.1
 $
 2,640.2
 $
 2,160.1

 Item 8. Financial Statements and Supplementary Data.

 Index of Consolidated Financial Statements for the fiscal years ended September 30, 2025, 2024 and 2023.

 CONTENTS
 Page

 Management's Report on Internal Control Over Financial Reporting

 Report of Independent Registered Public Accounting Firm (PCAOB ID 238)

 Consolidated Financial Statements of Franklin Resources, Inc. and its consolidated subsidiaries:

 Consolidated Statements of Income for the fiscal years ended September 30, 2025, 2024 and 2023

 Consolidated Statements of Comprehensive Income for the fiscal years ended September 30, 2025, 2024 and 2023

 Consolidated Balance Sheets as of September 30, 2025 and 2024

 Consolidated Statements of Stockholders' Equity as of and for the fiscal years ended September 30, 2025, 2024 and 2023

 Consolidated Statements of Cash Flows for the fiscal years ended September 30, 2025, 2024 and 2023

 Notes to Consolidated Financial Statements

 All schedules have been omitted as the information is provided in the financial statements or in related notes thereto or is not required to be filed, as the information is not applicable.

 MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
 The management of Franklin Resources, Inc. and its consolidated subsidiaries (the "Company") is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. The Company's internal control over financial reporting is a process designed under the supervision of the Company's principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company's financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.
 The Company's internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.
 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 Management assessed the effectiveness of the Company's internal control over financial reporting as of September 30, 2025, based on the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework (2013). Based on that assessment, management concluded that, as of September 30, 2025, the Company's internal control over financial reporting was effective.
 The effectiveness of the Company's internal control over financial reporting as of September 30, 2025 has been audited by PricewaterhouseCoopers LLP, the independent registered public accounting firm that audits the Company's consolidated financial statements, as stated in their report immediately following this report, which expresses an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of September 30, 2025.

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To the Board of Directors
 and Stockholders of Franklin Resources, Inc.

 Opinions on the Financial Statements and Internal Control over Financial Reporting
 We have audited the accompanying consolidated balance sheets of Franklin Resources, Inc. and its subsidiaries (the "Company") as of September 30, 2025 and 2024, and the related consolidated statements of income, of comprehensive income, of stockholders' equity and of cash flows for each of the three years in the period ended September 30, 2025, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
 In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of September 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended September 30, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
 Basis for Opinions
 The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
 Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
 Definition and Limitations of Internal Control over Financial Reporting
 A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of

 management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 Critical Audit Matters
 The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
 Realizability of Deferred Tax Assets
 As described in Notes 1 and 13 to the consolidated financial statements, the Company had gross deferred tax assets of $1,097.2 million as of September 30, 2025, reduced by a $ 297.1 million valuation allowance. Management recorded a valuation allowance to reduce the carrying values of deferred tax assets to the amount that is more likely than not to be realized. In assessing whether a valuation allowance should be established against a deferred income tax asset, management considers all positive and negative evidence, which includes timing of expiration, projected sources of taxable income, limitations on utilization under the statute, and effectiveness of prudent and feasible tax planning strategies.
 The principal considerations for our determination that performing procedures relating to the realizability of deferred tax assets is a critical audit matter are (i) the significant judgment by management when assessing the realizability of deferred tax assets and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to management's assessment of the realizability of deferred tax assets and management's assessment of the timing of expiration, projected sources of taxable income, limitations on utilization under the statute, and effectiveness of prudent and feasible tax planning strategies.
 Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the realizability of deferred tax assets, including controls over the completeness and accuracy of data relevant to the analysis, determination of projected sources of taxable income and expected utilization of deferred tax assets. These procedures also included, among others, (i) evaluating management's assessment of the realizability of deferred tax assets and the need for a valuation allowance, (ii) evaluating the positive and negative evidence to support the prudence and feasibility of the implementation of available tax planning strategies related to timing of expiration, projected sources of taxable income, limitations on utilization under the statute and effectiveness of prudent and feasible tax planning strategies, and (iii) testing the completeness and accuracy of the underlying data used in management's assessment of the realizability of deferred tax assets.
 Valuation of the Indefinite-Lived Intangible Asset Associated with the Management Contracts Managed by Western Asset Management
 As described in Notes 1 and 8 to the consolidated financial statements, the carrying value of the indefinite-lived intangible asset associated with the management contracts managed by Western Asset Management (WAM) was $ 450.0 million, net of an impairment of $ 200.0 million recognized during 2025. Indefinite-lived intangible assets are tested for impairment annually and when an event occurs or circumstances change that more likely than not reduce the fair value of the indefinite-lived intangible asset below its carrying value. The fair value of the indefinite-lived intangible asset was based on the net present value (NPV) of estimated future cash flows attributable to the management contracts, which include significant assumptions about the assets under management (AUM) growth rate, pre-tax profit margin, discount rate, average effective fee rate and effective tax rate.

 The principal considerations for our determination that performing procedures relating to the valuation of the indefinite-lived intangible asset associated with the management contracts managed by WAM is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the indefinite-lived intangible asset associated with the management contracts managed by WAM; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management's significant assumptions related to the AUM growth rate, pre-tax profit margin, and discount rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.
 Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the valuation of the indefinite-lived intangible asset associated with the management contracts managed by WAM, including controls over development of the AUM growth rate, pre-tax profit margin, and discount rate assumptions. These procedures also included, among others, (i) testing management's process for developing the fair value estimate of the indefinite-lived intangible asset associated with the management contracts managed by WAM, (ii) testing the completeness, accuracy, relevance and reliability of certain underlying data used in the NPV method, and (iii) evaluating the reasonableness of management's significant assumption related to the AUM growth rate and pre-tax profit margin by considering industry knowledge and data, current and past performance of the management contracts managed by WAM, and consistency with evidence obtained in other areas of the audit; and (iv) involving professionals with specialized skill and knowledge to assist in evaluating the appropriateness of the NPV method and the reasonableness of the discount rate assumption.

 /s/ PricewaterhouseCoopers LLP
 San Francisco, California
 We have served as the Company's auditor since 1974.

 CONSOLIDATED STATEMENTS OF INCOME

 (in millions, except per share data)

 2025
 2024
 2023

 Operating Revenues

 $
 6,981.8
 $
 6,822.2
 $
 6,452.9

 1,474.7
 1,381.0
 1,203.7

 264.5
 229.3
 152.7

 Other
 49.7
 45.5
 40.1

 Total operating revenues

 Operating Expenses

 Compensation and benefits
 3,818.2
 3,831.1
 3,494.0

 Sales, distribution and marketing
 2,010.9
 1,863.1
 1,613.1

 Information systems and technology
 643.6
 620.1
 505.0

 Occupancy
 286.3
 325.4
 228.9

 406.5
 338.2
 341.1

 226.6
 389.2
 —

 General, administrative and other
 774.5
 703.3
 565.0

 Total operating expenses
 8,166.6
 8,070.4
 6,747.1

 Operating Income
 604.1
 407.6
 1,102.3

 Other Income (Expenses)

 Investment and other income, net
 212.8
 395.5
 262.3

 Interest expense
 ( 94.9)
 ( 97.2)
 ( 123.7)

 Investment and other income of consolidated investment products, net
 108.4
 149.9
 115.8

 Expenses of consolidated investment products
 ( 43.6)
 ( 32.6)
 ( 18.7)

 Other income, net
 182.7
 415.6
 235.7

 Income before taxes
 786.8
 823.2
 1,338.0

 Taxes on income
 237.9
 215.3
 312.3

 548.9
 607.9
 1,025.7

 Less: net income (loss) attributable to

 Redeemable noncontrolling interests
 ( 52.7)
 127.9
 135.5

 Nonredeemable noncontrolling interests
 76.7
 15.2
 7.4

 Net Income Attributable to Franklin Resources, Inc.
 $
 524.9
 $
 464.8
 $
 882.8

 Earnings per Share

 Basic
 $
 0.91
 $
 0.85
 $
 1.72

 Diluted
 0.91
 0.85
 1.72

.

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 2025
 2024
 2023

 Net Income
 $
 548.9
 $
 607.9
 $
 1,025.7

 Other Comprehensive Income (Loss)

 Currency translation adjustments, net of tax
 ( 18.4)
 89.8
 112.8

 Net unrealized gains (losses) on defined benefit plans, net of tax
 ( 9.3)
 0.1
 ( 1.3)

 Net unrealized gains (losses) on investments, net of tax
 0.1
 ( 0.1)
 0.2

 Total other comprehensive income (loss)
 89.8
 111.7

 Total comprehensive income
 521.3
 697.7
 1,137.4

 Less: comprehensive income (loss) attributable to

 Redeemable noncontrolling interests
 ( 52.7)
 127.9
 135.5

 Nonredeemable noncontrolling interests
 76.7
 15.2
 7.4

 Comprehensive Income Attributable to Franklin Resources, Inc.
 $
 497.3
 $
 554.6
 $
 994.5

 CONSOLIDATED BALANCE SHEETS

 (in millions, except share and per share data)

 2025
 2024

 $
 $
 3,309.5

 Receivables
 1,541.7
 1,479.1

 Investments (including $ 1,179.5 and $ 838.0 at fair value at September 30, 2025 and 2024)

 2,374.0
 2,338.4

 Assets of consolidated investment products

 485.8
 1,099.4

 12,278.8
 11,034.9

 Property and equipment, net
 949.1
 946.4

 Goodwill
 6,206.0
 6,211.4

 Intangible assets, net
 4,166.0
 4,802.1

 Operating lease right-of-use assets
 764.3
 823.3

 Other
 514.5
 420.0

 Total Assets
 $
 32,368.3
 $
 32,464.5

 Liabilities

 Compensation and benefits
 $
 1,760.3
 $
 1,801.3

 Accounts payable and accrued expenses
 615.4
 551.5

 Income taxes
 207.5
 406.4

 Debt
 2,362.0
 2,780.3

 Liabilities of consolidated investment products

 Accounts payable and accrued expenses
 1,063.0
 861.3

 Debt
 9,937.3
 9,341.5

 Deferred tax liabilities
 261.6
 284.9

 Operating lease liabilities
 1,000.6
 965.1

 Other
 971.8
 907.4

 Total liabilities
 18,179.5
 17,899.7

 Commitments and Contingencies (Note 15)

 Redeemable Noncontrolling Interests
 1,182.0
 1,321.8

 Stockholders' Equity

 Preferred stock, $ 1.00 par value, 1,000,000 shares authorized; none issued

 —
 —

 Common stock, $ 0.10 par value, 1,000,000,000 shares authorized; 520,951,796 and 523,596,548 shares issued and outstanding at September 30, 2025 and 2024

 52.1
 52.4

 Capital in excess of par

 956.8
 947.6

 Retained earnings
 11,516.0
 11,927.6

 Accumulated other comprehensive loss
 ( 447.1)
 ( 419.5)

 Total Franklin Resources, Inc. stockholders' equity
 12,077.8
 12,508.1

 Nonredeemable noncontrolling interests
 929.0
 734.9

 Total stockholders' equity
 13,006.8
 13,243.0

 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity

 $
 32,368.3
 $
 32,464.5

 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

 Franklin Resources, Inc.
 Non-
redeemable
Non-
controlling
Interests
 Total
Stockholders'

 Common Stock
 Capital
in Excess
of Par
Value
 Retained
Earnings
 Accum-
ulated
Other
Compre-
hensive
Loss
 Stockholders'

 as of and for the fiscal years ended
September 30, 2025, 2024 and 2023
 Shares
 Amount

 Balance at October 1, 2022
 499.6
 $
 50.0
 $
 —
 $
 12,045.6
 $
 ( 621.0)
 $
 11,474.6
 $
 824.3
 $
 12,298.9

 882.8

 882.8
 7.4
 890.2

 Other comprehensive income

 111.7
 111.7

 111.7

 Dividends declared on common stock ($ 1.20 per share)

 ( 611.4)

 ( 611.4)

 ( 611.4)

 Repurchase of common stock

 ( 9.6)
 ( 1.0)
 ( 205.5)
 ( 49.8)

 ( 256.3)

 ( 256.3)

 Issuance of common stock

 5.9
 0.6
 214.5

 215.1

 215.1

 Stock-based compensation

 ( 9.0)

 ( 9.0)

 ( 9.0)

 Net subscriptions and other

 —

 —
 159.8
 159.8

 Net deconsolidation of investment products
 ( 360.6)
 ( 360.6)

 Adjustment to fair value of redeemable noncontrolling interests
 109.4
 109.4
 109.4

 Balance at September 30, 2023
 495.9
 $
 49.6
 $
 —
 $
 12,376.6
 $
 ( 509.3)
 $
 11,916.9
 $
 630.9
 $
 12,547.8

 464.8
 464.8
 15.2
 480.0

 Other comprehensive income
 89.8
 89.8
 89.8

 Dividends declared on common stock ($ 1.24 per share)

 ( 670.1)
 ( 670.1)
 ( 670.1)

 Repurchase of common stock

 ( 12.0)
 ( 1.2)
 ( 281.2)
 8.0
 ( 274.4)
 ( 274.4)

 Issuance of common stock

 8.1
 0.8
 230.8
 231.6
 231.6

 Stock-based compensation

 61.1
 61.1
 61.1

 Acquisition

 31.6
 3.2
 936.9
 940.1
 25.8
 965.9

 Net subscriptions and other
 —
 —
 108.7
 108.7

 Net deconsolidation of investment products
 ( 45.7)
 ( 45.7)

 Adjustment to fair value of redeemable noncontrolling interests
 ( 251.7)
 ( 251.7)
 ( 251.7)

 Balance at September 30, 2024
 523.6
 $
 52.4
 $
 947.6
 $
 11,927.6
 $
 ( 419.5)
 $
 12,508.1
 $
 734.9
 $
 13,243.0

 524.9
 524.9
 76.7
 601.6

 Other comprehensive loss

 Dividends declared on common stock ($ 1.28 per share)

 ( 688.4)
 ( 688.4)
 ( 688.4)

 Repurchase of common stock

 ( 10.7)
 ( 1.1)
 ( 239.2)
 —
 ( 240.3)
 ( 240.3)

 Issuance of common stock

 8.1
 0.8
 242.0
 242.8
 242.8

 Stock-based compensation

 6.4
 6.4
 6.4

 Net subscriptions and other
 —
 —
 99.4
 99.4

 Net consolidation of investment products
 18.0
 18.0

 Adjustment to fair value of redeemable noncontrolling interests
 ( 248.1)
 ( 248.1)
 ( 248.1)

 Balance at September 30, 2025
 521.0
 $
 52.1
 $
 956.8
 $
 11,516.0
 $
 ( 447.1)
 $
 12,077.8
 $
 929.0
 $
 13,006.8

 CONSOLIDATED STATEMENTS OF CASH FLOWS

 2025
 2024
 2023

 Net Income
 $
 548.9
 $
 607.9
 $
 1,025.7

 Adjustments to reconcile net income to net cash provided by operating activities:

 Stock-based compensation
 214.8
 246.1
 182.6

 Amortization of deferred sales commissions
 79.8
 62.0
 50.0

 Depreciation and other amortization
 125.3
 116.5
 104.3

 406.5
 338.2
 341.1

 Impairment of intangible asset

 226.6
 389.2
 —

 Net losses (gains) on investments
 37.6
 ( 57.6)
 ( 39.5)

 Income from investments in equity method investees
 ( 78.0)
 ( 137.5)
 ( 45.4)

 Net (gains) losses on investments of consolidated investment products
 ( 4.1)
 24.9
 120.4

 Net purchase of investments by consolidated investment products
 ( 369.4)
 ( 520.2)
 ( 829.4)

 Deferred income taxes
 ( 47.2)
 ( 124.6)
 41.5

 Other
 174.4
 172.2
 73.2

 Changes in operating assets and liabilities:

 Increase in receivables and other assets
 ( 128.7)
 ( 111.8)
 ( 63.2)

 Decrease in investments, net
 19.0
 9.4
 2.8

 Increase (decrease) in accrued compensation and benefits
 ( 32.9)
 86.5
 128.9

 Decrease in income taxes payable
 ( 181.5)
 ( 93.4)
 ( 1.1)

 Increase (decrease) in accounts payable, accrued expenses and other liabilities
 90.0
 3.9
 ( 4.5)

 Increase (decrease) in accounts payable and accrued expenses of consolidated investment products
 ( 15.0)
 ( 40.4)
 1.8

 Net cash provided by operating activities
 1,066.1
 971.3
 1,089.2

 Purchase of investments
 ( 1,037.2)
 ( 1,127.7)
 ( 757.8)

 Liquidation of investments

 776.2
 1,406.8
 608.6

 Purchase of investments by consolidated collateralized loan obligations

 ( 6,538.9)
 ( 6,310.0)
 ( 4,364.1)

 Liquidation of investments by consolidated collateralized loan obligations

 4,918.6
 4,250.7
 1,834.1

 Additions of property and equipment, net

 ( 154.5)
 ( 177.1)
 ( 148.8)

 Acquisitions, net of cash acquired (including $ 281.4 in cash and cash equivalents of consolidated investment products in fiscal year 2024)

 —
 175.1
 ( 500.5)

 Payments of contingent consideration asset
 —
 —
 9.8

 Payments of deferred consideration liability
 ( 90.5)
 ( 534.9)
 ( 241.8)

 Net deconsolidation of investment products
 ( 216.4)
 ( 106.6)
 ( 49.8)

 Net cash used in investing activities
 ( 2,342.7)
 ( 2,423.7)
 ( 3,610.3)

 [Table continued on next page]

 CONSOLIDATED STATEMENTS OF CASH FLOWS
 [Table continued from previous page]

 2025
 2024
 2023

 Issuance of common stock
 $
 24.1
 $
 20.8
 $
 23.3

 Dividends paid on common stock

 ( 683.7)
 ( 656.4)
 ( 607.3)

 Repurchase of common stock

 ( 240.3)
 ( 274.4)
 ( 256.3)

 Proceeds from repurchase agreement
 144.7
 5.3
 174.8

 Payments on repurchase agreement

 ( 61.8)
 ( 81.1)
 —

 Proceeds from debt

 300.0
 —
 —

 Payments on debt

 ( 700.0)
 ( 250.0)
 ( 300.0)

 Proceeds from debt of consolidated investment products

 6,029.7
 4,346.7
 3,539.9

 Payments on debt by consolidated investment products

 ( 4,800.6)
 ( 1,912.9)
 ( 1,105.0)

 Payments on contingent consideration liabilities

 ( 6.8)
 ( 22.8)
 ( 7.6)

 Noncontrolling interests

 447.1
 240.4
 644.9

 Net cash provided by financing activities
 452.4
 1,415.6
 2,106.7

 Effect of exchange rate changes on cash and cash equivalents

 ( 10.8)
 43.3
 34.3

 Increase (decrease) in cash and cash equivalents
 ( 835.0)
 6.5
 ( 380.1)

 Cash and cash equivalents, beginning of year

 4,408.9
 4,402.4
 4,782.5

 Cash and Cash Equivalents, End of Year

 $
 3,573.9
 $
 4,408.9
 $
 4,402.4

 Supplemental Disclosure of Cash Flow Information

 Cash paid for income taxes

 $
 465.4
 $
 435.7
 $
 233.2

 Cash paid for interest

 106.6
 113.4
 121.9

 Cash paid for interest by consolidated investment products

 753.2
 694.2
 379.2

 Non-cash purchase of investments

 68.4
 —
 —

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 Note 1 – Significant Accounting Policies
 Business. Franklin is a holding company with subsidiaries operating under its Franklin Templeton and/or subsidiary brand names. The Company provides investment management and related services to investors in jurisdictions worldwide through investment products which include sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles. The Company's related services include fund administration, sales and distribution, and shareholder servicing.
 Basis of Presentation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Management believes that the accounting estimates are appropriate, and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates, actual amounts may differ from these estimates.
 Consolidation. The consolidated financial statements include the accounts of Franklin and its subsidiaries and consolidated investment products ("CIPs") in which it has a controlling financial interest. The Company has a controlling financial interest when it owns a majority of the voting interest in a voting interest entity ("VOE") or is the primary beneficiary of a variable interest entity ("VIE"). Intercompany accounts and transactions have been eliminated.
 A VIE is an entity in which the equity investment holders have not contributed sufficient capital to finance its activities or do not have defined rights and obligations normally associated with an equity investment. The Company's VIEs are primarily investment products, and its variable interests consist of its equity ownership interests in and investment management fees earned from these products.
 The Company is the primary beneficiary of a VIE if it has the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses of or right to receive benefits from the VIE that could potentially be significant to the VIE. Investment management fees earned from VIEs are excluded from the primary beneficiary determination if they are deemed to be at market and commensurate with service.
 Related Parties include sponsored funds and equity method investees. A substantial amount of the Company's operating revenues and receivables are from related parties.
 Earnings per Share. Basic and diluted earnings per share are computed using the two-class method, which considers participating securities as a separate class of shares. The Company's participating securities consist of its nonvested stock and stock unit awards that contain nonforfeitable rights to dividends or dividend equivalents. Basic earnings per share is computed by dividing net income available to the Company's common stockholders, adjusted to exclude earnings allocated to participating securities, by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period.
 Business combinations are accounted for by recognizing the acquired assets, including separately identifiable intangible assets, and assumed liabilities at their acquisition-date estimated fair values. Any excess of the purchase consideration over the acquisition-date fair values of these identifiable assets and liabilities is recognized as goodwill. During the measurement period, which is not to exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed due to new information about facts that existed as of the acquisition date, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in earnings.
 Intangible assets acquired in business combinations consist primarily of investment management contracts and trade names. The fair values of the acquired management contracts are based on the net present value of estimated future cash flows attributable to the contracts, which include significant assumptions about forecasts of the AUM growth rate, pre-tax profit margin, discount rate, average effective fee rate and effective tax rate. The fair value of trade names is determined using the relief from royalty method based on net present value of estimated future cash flows, which include significant assumptions about royalty rate, revenue growth rate, discount rate and effective tax rate. The management contract intangible assets are amortized over their estimated useful lives, which range from three to 16 years, using the straight-line method, unless the asset is determined to have an indefinite useful life. Indefinite-lived intangible assets represent contracts

 to manage investment assets for which there is no foreseeable limit on the contract period. Trade names intangible assets are amortized over their estimated useful lives which range from five to twenty years using the straight-line method.
 Goodwill and indefinite-lived intangible assets are tested for impairment annually as of August 1 and when an event occurs or circumstances change that more likely than not reduce the fair value of the related reporting unit or indefinite-lived intangible asset below its carrying value. The Company has one reporting unit, investment management and related services, consistent with its single operating segment, to which all goodwill has been assigned.
 Goodwill and indefinite-lived intangible assets may first be assessed for qualitative factors to determine whether it is necessary to perform a quantitative impairment test. The qualitative analysis considers entity-specific and macroeconomic factors and their potential impact on the key assumptions used in the determination of the fair value of the reporting unit or indefinite-lived intangible asset. A quantitative impairment test is performed if the results of the qualitative assessment indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value or an indefinite-lived intangible asset is impaired, or if a qualitative assessment is not performed.
 The fair values of the reporting unit and indefinite-lived intangible assets are based on the net present value of estimated future cash flows, which include assumptions about the AUM growth rate, pre-tax profit margin, discount rate, average effective fee rate and effective tax rate.
 If a quantitative goodwill impairment test indicates that the carrying value of the reporting unit exceeds its fair value, impairment is recognized in the amount of the difference in values not to exceed the total amount of goodwill allocated to the reporting unit.
 If a quantitative indefinite-lived intangible assets impairment test indicates that the carrying value of the asset exceeds the fair value, impairment is recognized in the amount of the difference in values.
 Definite-lived intangible assets are tested for impairment quarterly. Impairment is indicated when the carrying value of an asset is not recoverable and exceeds its fair value. Recoverability is evaluated based on estimated undiscounted future cash flows using assumptions about the AUM growth rate, pre-tax profit margin, average effective fee rate and expected useful lives as well as royalty rate for trade names intangible assets. If the carrying value of an asset is not recoverable through undiscounted cash flows, impairment is recognized in the amount by which the carrying value exceeds the asset's fair value, as determined by discounted cash flows or other methods as appropriate for the asset type.
 Fair Value Measurements. The Company uses a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The three levels of fair value hierarchy are set forth below. The assessment of the hierarchy level of the assets or liabilities measured at fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 Unadjusted quoted prices in active markets for identical assets or liabilities, which may include published net asset values ("NAV") for fund products.

 Observable inputs other than Level 1 quoted prices, such as non-binding quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, or model-based valuation methodologies that utilize significant assumptions that are observable or corroborated by observable market data.

 Unobservable inputs that are supported by little or no market activity. These inputs require significant management judgment and reflect the Company's estimation of assumptions that market participants would use in pricing the asset or liability.

 Quoted market prices may be adjusted if events occur, such as global market fluctuations, issuer specific news, economic and geopolitical events, natural disasters, and governmental actions. A pricing vendor is engaged to provide a valuation factor, which represents an estimate as to how much a specific investment value would have changed between the time that the investment stopped trading in its local market and the time that the fund's NAV was determined. The price adjustments are primarily determined based on third-party factors derived from model-based valuation techniques for which the significant assumptions are observable in the market.
 The Company's investments are primarily recorded at fair value or amounts that approximate fair value on a recurring basis. Investments in fund products for which fair value is estimated using NAV as a practical expedient (when

 the NAV is available to the Company as an investor but is not publicly available) are not classified in the fair value hierarchy. Fair values are estimated for disclosure purposes for financial instruments that are not measured at fair value.
 Cash and Cash Equivalents primarily consist of nonconsolidated sponsored money market funds and deposits with financial institutions and are carried at cost. Due to the short-term nature and liquidity of these financial instruments, their carrying values approximate fair value.
 The Company maintains cash and cash equivalents with financial institutions in various countries, limits the amount of credit exposure with any given financial institution and conducts ongoing evaluations of the creditworthiness of the financial institutions with which it does business.
 Receivables consist primarily of fees receivable from investment products and are carried at invoiced amounts. Due to the short-term nature and liquidity of the receivables, their carrying values approximate fair value.
 Investments consist of investments in sponsored funds and separate accounts, investments related to long-term incentive plans, other equity and debt securities, investments in equity method investees and other investments.
 Investments in sponsored funds and separate accounts consist primarily of nonconsolidated sponsored funds and to a lesser extent, separate accounts. Sponsored funds and separate accounts are carried at fair value with changes in the fair value recognized as gains and losses in earnings. The fair values of fund products are determined based on their published NAV or estimated using NAV as a practical expedient. The fair values of the underlying investments of the separate accounts are determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available.
 Investments related to long-term incentive plans consist primarily of investments in sponsored funds related to certain compensation plans that have vesting provision and are carried at fair value. Changes in fair value are recognized as gains and losses in earnings. The fair values of the investments are determined based on the sponsored funds' published NAV or estimated using NAV as a practical expedient.
 Other equity and debt investments consist of equity and debt securities carried at fair value. Changes in the fair value of equity securities other than fund products are recognized as gains and losses in earnings. The fair values of equity and debt securities are determined using independent third-party broker or dealer price quotes or based on either a market-based or income-based approach using significant unobservable inputs. The fair values of fund products are determined based on their published NAV or estimated using NAV as a practical expedient.
 Investments in Equity Method Investees consist of equity investments in entities, including sponsored funds, over which the Company is able to exercise significant influence, but not control. Significant influence is generally considered to exist when the Company's ownership interest in the investee is between 20% and 50%, although other factors, such as representation on the investee's board of directors and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. Investments in limited partnerships and limited liability companies are accounted for using the equity method when the Company's investment is more than minor or when the Company is the general partner. Under the equity method of accounting, the investments are initially carried at cost and subsequently adjusted by the Company's proportionate share of the entities' net income, which is recognized in earnings.
 Other Investments consist of equity investments in entities over which the Company is unable to exercise significant influence and do not have a readily determinable fair value, and time deposits with maturities greater than three months from the date of purchase. The equity investments are measured at cost adjusted for observable price changes and impairment, if any, which are recognized in earnings. The fair value of the entities is generally estimated using significant unobservable inputs in either a market-based or income-based approach. The time deposits are carried at cost which approximates fair value due to their short-term nature and liquidity.
 Impairment of Investments. Investments in equity method investees and equity investments that do not have a readily determinable fair value are evaluated for impairment on a quarterly basis. The evaluation of equity investments considers qualitative factors, including the financial condition and specific events related to an investee that may indicate the fair value of the investment is less than its carrying value. Impairment of equity securities is recognized in earnings.
 Cash and Cash Equivalents of CIPs consist of highly liquid investments, including money market funds, which are readily convertible into cash, and deposits with financial institutions, and are carried at cost. Due to the short-term nature and liquidity of these financial instruments, their carrying values approximate fair value.

 Receivables of CIPs consist of investment and share transaction related receivables and are carried at transacted amounts. Due to the short-term nature and liquidity of the receivables, their carrying values approximate fair value.
 Investments of CIPs consist of marketable debt and equity securities and other investments that are not generally traded in active markets, and are carried at fair value. Changes in the fair value of the investments are recognized as gains and losses in earnings. The fair values of marketable securities are determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available.
 The investments that are not generally traded in active markets consist of equity and debt securities of entities in emerging markets, fund products, other equity and debt instruments, and loans. The fair values are determined using significant unobservable inputs in either a market-based or income-based approach, except for fund products, for which fair values are estimated using NAV as a practical expedient.
 Property and Equipment, net are recorded at cost and depreciated using the straight-line method over their estimated useful lives which range from three to 35 years. Expenditures for repairs and maintenance are charged to expense when incurred. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the lease term, whichever is shorter.
 Internal and external costs incurred in connection with developing or obtaining software for internal use are capitalized and amortized over the shorter of the estimated useful lives of the software or the license terms, beginning when the software project is complete and the application is put into production.
 Property and equipment are tested for impairment when there is an indication that the carrying value of an asset may not be recoverable. Carrying values are not recoverable when the undiscounted cash flows estimated to be generated by the assets are less than their carrying values. When an asset is determined to not be recoverable, the impairment is measured based on the excess, if any, of the carrying value of the asset over its respective fair value. Fair value is determined by discounted future cash flows models, appraisals or other applicable methods.
 Leases consist primarily of operating leases relating to real estate. At the inception of a contract, the Company determines whether it is or contains a lease, which includes consideration of whether there are identified assets in the contract and if the Company has control over such assets. Right-of-use ("ROU") assets and lease liabilities are recognized for all arrangements that qualify as a lease, except for those with original lease terms of twelve months or less.
 ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments using an incremental borrowing rate estimated on a collateralized basis with similar terms for the specific interest rate environment. Leases with fixed payments are expensed on a straight-line basis over the lease term. Variable lease payments based on usage, changes in an index or market rate are expensed as incurred. The lease terms include options to extend or terminate the lease when it is reasonably certain they will be exercised.
 Lease and nonlease payment components are accounted for separately. ROU assets are tested for impairment when there is an indication that the carrying value of an asset may not be recoverable.
 Debt consists of senior notes which are carried at amortized cost. The fair value is estimated using quoted market prices, independent third-party broker or dealer price quotes, or prices of publicly traded debt with similar maturities, credit risk and interest rates. Amortization of debt premium and discount are recognized over the terms of the notes in interest expense.
 Debt of CIPs is carried at amortized cost. The fair value is estimated using a discounted cash flow model that considers current interest rate levels, the quality of the underlying collateral and current economic conditions. Debt of CIPs also included debt of consolidated collateralized loan obligations ("CLOs") which is measured primarily based on the fair value of the assets of the CLOs less the fair value of the Company's own economic interests in the CLOs.

 Noncontrolling Interests consist of third-party equity interests in CIPs and minority interests in certain subsidiaries. Noncontrolling interests that are redeemable or convertible for cash or other assets at the option of the holder are classified as temporary equity at the higher of fair value on reporting date or issuance-date fair value. Changes in fair value of redeemable noncontrolling interest is recognized as an adjustment to retained earnings. Nonredeemable noncontrolling interests are classified as a component of equity. Net income (loss) attributable to third-party investors is reflected as net income (loss) attributable to nonredeemable and redeemable noncontrolling interests in the consolidated statements of income. Subscriptions and redemptions of shares of CIPs by third-party investors are a component of the change in noncontrolling interests included in financing activities in the consolidated statements of cash flows.
 The fair values of third-party equity interests in CIPs are determined based on the published NAV or estimated using NAV a practical expedient. The fair values of redeemable noncontrolling interests related to minority interest in certain subsidiaries are determined using discounted cash flows and guideline public company methods, which include significant assumptions about forecasts of the AUM growth rate, pre-tax profit margin, discount rate and public company earnings multiples.
 Revenues. The Company earns revenue primarily from providing investment management and related services to its customers, which are generally investment products or investors in separate accounts. Related services include fund administration, sales and distribution, and shareholder servicing. Revenues are recognized when the Company's obligations related to the services are satisfied and it is probable that a significant reversal of the revenue amount would not occur in future periods. The obligations are satisfied over time as the services are rendered, except for the sales and distribution obligations for the sale of shares of sponsored funds which are satisfied on trade date. Multiple services included in customer contracts are accounted for separately when the obligations are determined to be distinct.
 Fees from providing investment management and fund administration services ("investment management fees"), other than performance-based investment management fees, are determined based on a percentage of AUM, primarily on a monthly basis using daily average AUM, and are recognized as the services are performed over time. Performance-based investment management fees are generally generated when investment products' performance exceeds targets established in customer contracts. These fees are recognized when the amount is no longer probable of significant reversal and may relate to investment management services that were provided in prior periods.
 Sales and distribution fees primarily consist of upfront sales commissions and ongoing distribution fees. Sales commissions are based on contractual rates for sales of certain classes of sponsored funds and are recognized on trade date. Distribution service fees are determined based on a percentage of AUM, primarily on a monthly basis using daily average AUM. As the fee amounts are uncertain on trade date, they are recognized over time as the amounts become known and may relate to sales and distribution services provided in prior periods.
 Shareholder servicing fees are primarily determined based on a contractual margin, or a percentage of AUM on a monthly basis using daily average AUM and either the number of transactions in shareholder accounts or the number of shareholder accounts, while fees from certain investment products are based only on AUM. The fees are recognized as the services are performed over time.
 AUM is generally based on the fair value of the underlying securities held by investment products and is calculated using fair value methods derived primarily from unadjusted quoted market prices, unadjusted independent third-party broker or dealer price quotes in active markets, or market prices or price quotes adjusted for observable price movements after the close of the primary market in accordance with the Company's global valuation and pricing policy. The fair values of securities for which market prices are not readily available are valued internally using various methodologies which incorporate significant unobservable inputs as appropriate for each security type and represent an insignificant percentage of total AUM.
 Revenue is recorded gross of payments made to third-party providers in the Company's role as principal as it controls the delegated services provided to customers.
 Stock-Based Compensation. The fair value of stock-based payment awards is estimated on the date of grant based on the market price of the underlying shares of the Company's common stock and is amortized to compensation expense on a straight-line basis over the related vesting period, which is generally three years. Expense relating to awards subject to performance conditions is recognized if it is probable that the conditions will be achieved. The probability of achievement is assessed on a quarterly basis. Forfeitures are accounted for as they occur. The fair value of cash-settled phantom stock

 awards is amortized to compensation expense on a straight-line basis over the related vesting period, which is generally four years, and the related liability is carried at fair value.
 Postretirement Benefits. Defined contribution plan costs are expensed as incurred.
 Income Taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and the reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year when the reported amount of the asset or liability is expected to be recovered or settled, respectively. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying values of deferred tax assets to the amount that is more likely than not to be realized. In assessing whether a valuation allowance should be established against a deferred tax asset, the Company considers all positive and negative evidence, which includes timing of expiration, projected sources of taxable income, limitations on utilization under the statute and the effectiveness of prudent and feasible tax planning strategies among other factors. For each tax position taken or expected to be taken in a tax return, the Company utilizes significant judgment related to the range of possible favorable or unfavorable outcomes to determine whether it is more likely than not that the position will be sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation. A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest on tax matters is recognized in interest expense. Penalties are recognized in other operating expenses.
 The Company operates in numerous countries, states and other taxing jurisdictions. The income tax laws are complex and subject to different interpretations by the taxpayer and the relevant taxing authorities. Significant judgment is required in the determination of the Company's annual income tax provisions, which includes the assessment of deferred tax assets and uncertain tax positions, as well as the interpretation and application of existing and newly enacted tax laws, regulation changes, and new judicial rulings. The Company repatriates foreign earnings that are in excess of regulatory, capital or operational requirements of all of its non-U.S. subsidiaries.
 Foreign Currency Translation and Transactions. Assets and liabilities of non-U.S. subsidiaries for which the local currency is the functional currency are translated at current exchange rates as of the end of the reporting period. The related revenues and expenses are translated at average exchange rates in effect during the period. Net exchange gains and losses resulting from translation are excluded from income and are recorded as part of accumulated other comprehensive income (loss). Transactions denominated in a foreign currency are revalued at the current exchange rate at the transaction date and any related gains and losses are recognized in earnings.

 Note 2 – New Accounting Guidance
 Recently Adopted Accounting Guidance
 On October 1, 2024, the Company adopted the amendment issued by the Financial Accounting Standards Board ("FASB") for segment reporting. The amendment requires annual and interim disclosures of significant segment expenses that are regularly provided to the chief operating decision maker by reportable segment and clarifies that single reportable segment entities are required to apply all existing segment disclosures in the guidance. The adoption of this amendment resulted in additional disclosures. See Note 18 – Segment and Geographic Information.
 Accounting Guidance Not Yet Adopted
 In December 2023, the FASB issued an amendment to the existing income taxes guidance. The amendment requires the disclosure of additional information with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes and requires greater detail about significant reconciling items in the reconciliation. Additionally, the amendment requires disaggregated information pertaining to taxes paid, net of refunds received, for federal, state, and foreign income taxes. The amendment allows for either a prospective or retrospective approach on adoption and is effective for the Company on October 1, 2025. The Company will elect the prospective approach and include the relevant disclosures in its Annual Report on Form 10-K for the fiscal year ending September 30, 2026.

 In December 2023, the FASB issued an amendment to the existing intangible assets guidance. The amendment requires eligible crypto assets to be measured at fair value, with changes recognized in net income, along with expanded disclosures. The amendment is effective for the Company on October 1, 2025, and requires a modified-retrospective transition approach. The Company will recognize a cumulative effective adjustment of approximately $ 26 million through retained earnings at adoption.
 In November 2024, the FASB issued new guidance requiring disclosures of additional information and disaggregation of certain expenses included in the income statement. The guidance is effective for the Company on October 1, 2027, and allows for either a prospective or retrospective approach on adoption. The Company is currently evaluating the impact that the adoption will have on its financial statements and has not yet determined its transition approach.
 In September 2025, the FASB issued an amendment to the existing internal-use software guidance. The amendment eliminates the project stage model and clarifies that capitalization of internal-use software costs commences when management has authorized and committed funding for the project and it is probable that software will be completed and used for its intended function. The amendment allows for varying transition approaches and is effective for the Company on October 1, 2028, with early adoption permitted. The Company is currently evaluating the impact of adopting the guidance and has not yet determined its transition approach.

 Note 3 – Earnings per Share
 The components of basic and diluted earnings per share were as follows:

 (in millions, except per share data)

 2025
 2024
 2023

 Net income attributable to Franklin Resources, Inc.
 $
 524.9
 $
 464.8
 $
 882.8

 Less: allocation of earnings to participating nonvested stock and stock unit awards

 53.2
 32.6
 37.7

 Net Income Available to Common Stockholders
 $
 471.7
 $
 432.2
 $
 845.1

 Weighted-average shares outstanding – basic

 516.7
 509.5
 490.0

 Dilutive effect of nonparticipating nonvested stock unit awards

 0.7
 0.8
 0.8

 Weighted-Average Shares Outstanding – Diluted
 517.4
 510.3
 490.8

 Earnings per Share

 Basic
 $
 0.91
 $
 0.85
 $
 1.72

 Diluted
 0.91
 0.85
 1.72

 Nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive were not significant for the fiscal year ended September 30, 2025 ("fiscal year 2025"), the fiscal year ended September 30, 2024 ("fiscal year 2024") and fiscal year 2023.

 Note 4 – Revenues
 Operating revenues by geographic area were as follows:

 Americas
 Europe,
Middle East
and Africa,
 Total

September 30, 2025

 $
 5,292.3
 $
 894.4
 $
 302.3
 $
 214.8
 $
 278.0
 $
 6,981.8

 1,042.2
 370.0
 22.7
 38.9
 0.9
 1,474.7

 231.3
 31.2
 1.7
 0.3
 —
 264.5

 Other

 48.4
 0.1
 1.1
 —
 0.1
 49.7

 Total

 $
 6,614.2
 $
 1,295.7
 $
 327.8
 $
 254.0
 $
 279.0
 $

 Americas
 Europe,
Middle East
and Africa,
 Total

September 30, 2024

 $
 5,142.8
 $
 862.3
 $
 283.8
 $
 228.1
 $
 305.2
 $
 6,822.2

 979.2
 342.8
 19.2
 39.8
 —
 1,381.0

 195.3
 31.7
 2.2
 0.1
 —
 229.3

 Other

 40.5
 0.7
 3.7
 —
 0.6
 45.5

 Total

 $
 6,357.8
 $
 1,237.5
 $
 308.9
 $
 268.0
 $
 305.8
 $

 Americas
 Europe,
Middle East
and Africa,
 Total

September 30, 2023

 $
 4,877.1
 $
 803.9
 $
 285.6
 $
 216.2
 $
 270.1
 $
 6,452.9

 847.3
 296.0
 19.8
 40.6
 —
 1,203.7

 118.7
 31.5
 2.2
 0.3
 —
 152.7

 Other

 37.7
 0.8
 1.2
 —
 0.4
 40.1

 Total

 $
 5,880.8
 $
 1,132.2
 $
 308.8
 $
 257.1
 $
 270.5
 $

 Operating revenues are attributed to geographic areas based on the jurisdiction of the subsidiaries that provide the services, which may differ from the regions in which the related investment products are sold and domicile of the fund vehicle or client.
 Revenues earned from sponsored funds were 84 %, 82 % and 82 % of the Company's total operating revenues for the fiscal years 2025, 2024 and 2023.

 Note 5 – Investments
 The disclosures below include details of the Company's investments, excluding those of CIPs. See Note 10 – Consolidated Investment Products for information related to the investments held by these entities.
 Investments consisted of the following:

 2025
 2024

 Sponsored funds and separate accounts
 $
 809.6
 $
 509.1

 Investments related to long-term incentive plans
 288.1
 271.6

 Other equity and debt investments
 81.8
 57.3

 Total investments, at fair value
 1,179.5
 838.0

 Investments in equity method investees
 893.9
 1,219.7

 Other investments
 300.6
 280.7

 Total
 $
 2,374.0
 $
 2,338.4

 The Company has entered into repurchase agreements with a third-party financing company for certain investments held by the Company. As of September 30, 2025 and 2024, other liabilities includes repurchase agreements of $ 200.5 million and $ 111.4 million with investments of $ 206.4 million and $ 121.7 million in carrying value pledged as collateral. The repurchase agreements have contractual maturity dates ranging between 2030 to 2039.

 Note 6 – Fair Value Measurements
 The disclosures below include details of the Company's fair value measurements, excluding those of CIPs. See Note 10 – Consolidated Investment Products for information related to fair value measurements of the assets and liabilities of these entities.
 The assets and liabilities measured at fair value on a recurring basis were as follows:

 NAV as a
Practical
Expedient
 Total

 Sponsored funds and separate accounts

 $
 463.9
 $
 305.2
 $
 2.2
 $
 38.3
 $
 809.6

 Investments related to long-term incentive plans

 253.4
 3.3
 —
 31.4
 288.1

 Other equity and debt investments
 12.4
 9.4
 1.8
 29.2
 52.8

 Total Assets Measured at Fair Value
 $
 729.7
 $
 317.9
 $
 4.0
 $
 98.9
 $
 1,150.5

 Liabilities

 Securities sold short
 $
 193.7
 $
 —
 $
 —
 $
 —
 $
 193.7

 Contingent consideration liabilities
 —
 —
 20.4
 —
 20.4

 Total Liabilities Measured at Fair Value
 $
 193.7
 $
 —
 $
 20.4
 $
 —
 $
 214.1

 As of September 30, 2025, there were $ 29.0 million of other investments which were adjusted to fair value on a nonrecurring basis and excluded from the table above.

 NAV as a
Practical
Expedient
 Total

 as of September 30, 2024

 Sponsored funds and separate accounts

 $
 306.3
 $
 157.4
 $
 5.2
 $
 40.2
 $
 509.1

 Investments related to long-term incentive plans

 242.5
 —
 —
 29.1
 271.6

 Other equity and debt investments

 4.1
 11.1
 2.6
 39.5
 57.3

 Total Assets Measured at Fair Value
 $
 552.9
 $
 168.5
 $
 7.8
 $
 108.8
 $
 838.0

 Liabilities

 Securities sold short

 $
 178.1
 $
 —
 $
 —
 $
 —
 $
 178.1

 Contingent consideration liabilities
 —
 —
 28.2
 —
 28.2

 Total Liabilities Measured at Fair Value
 $
 178.1
 $
 —
 $
 28.2
 $
 —
 $
 206.3

 Investments for which fair value was estimated using reported NAV as a practical expedient primarily consist of nonredeemable private equity, debt and infrastructure funds, and redeemable alternative credit, global equity, private real estate funds and alternatives. These investments were as follows:

 2025
 2024

 Nonredeemable investments1

 Investments with known liquidation periods
 $
 19.7
 $
 32.4

 Investments with unknown liquidation periods
 15.2
 16.1

 Redeemable investments2

 64.0
 60.3

 Unfunded commitments
 13.3
 14.0

 1 The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds' underlying assets. Investments with known liquidation periods have an expected weighted-average life of 2.2 years and 1.9 years at September 30, 2025 and 2024.
 2 Investments are redeemable on a semi-monthly, monthly and quarterly basis.
 Financial instruments that were not measured at fair value were as follows:

 Fair
Value
Level
 2025
 2024

Value
 Estimated
Value
 Estimated

 Financial Assets

 $
 $
 $
 3,309.5
 $
 3,309.5

 Other investments

 Time deposits
 9.2
 9.2
 9.8
 9.8

 Equity securities
 291.4
 291.4
 270.9
 270.9

 Financial Liability

 Debt
 $
 2,362.0
 $
 1,970.9
 $
 2,780.3
 $
 2,387.0

 Note 7 – Property and Equipment
 Property and equipment, net consisted of the following:

 Useful Lives
In Years

 2025
 2024

 Buildings and leasehold improvements
 $
 1,096.4
 $
 1,064.3
 5 - 35

 Software
 419.9
 426.6
 3 - 10

 Equipment and furniture
 297.6
 337.9
 3 - 10

 Land
 80.0
 79.3
 N/A

 Total cost
 1,893.9
 1,908.1

 Less: accumulated depreciation and amortization
 ( 944.8)
 ( 961.7)

 Property and Equipment, Net
 $
 949.1
 $
 946.4

 Depreciation and amortization expense related to property and equipment was $ 141.4 million, $ 129.9 million and $ 108.2 million in fiscal years 2025, 2024 and 2023. The Company recognized no impairment of property and equipment in fiscal years 2025, 2024 and 2023.

 Note 8 – Goodwill and Other Intangible Assets
 Goodwill and other intangible assets, net consisted of the following:

 2025
 2024

 Goodwill
 $
 6,206.0
 $
 6,211.4

 Indefinite-lived intangible assets
 3,400.3
 3,851.5

 Definite-lived intangible assets, net
 765.7
 950.6

 Goodwill and Other Intangible Assets, Net
 $
 10,372.0
 $
 11,013.5

 Changes in the carrying value of goodwill were as follows:

 2025
 2024

 Balance at beginning of year
 $
 6,211.4
 $
 6,003.8

 Acquisitions
 —
 189.8

 Purchase price allocation adjustment
 —
 4.7

 Foreign exchange revaluation
 ( 5.4)
 13.1

 Balance at End of Year
 $
 6,206.0
 $
 6,211.4

 During fiscal years 2025 and 2024, no impairment of goodwill was recognized.
 The Company recognized an impairment of an indefinite-lived intangible asset of $ 200.0 million during fiscal year 2025 related to certain contracts managed by Western Asset Management Company ("WAM") primarily due to a decline in expected future growth rates and profit margins in the related AUM based on a shift to lower fee products resulting in lower discounted future cash flows generated from these management contracts. The impairment reduced the carrying value of this asset to $ 450.0 million. The Company also recognized impairment charges of $ 24.4 million related to certain other indefinite-lived intangible assets related to management contracts during fiscal year 2025. The Company recognized an impairment of $ 389.2 million of an indefinite-lived intangible asset related to WAM management contracts during fiscal year 2024.
 During fiscal year 2025, the Company reclassified $ 223.9 million of certain indefinite-lived intangible assets related to management contracts to definite lived intangible assets, including $ 125.0 million related to WAM management contracts, and shortened the useful lives of certain trade name definite-lived intangible assets, primarily due to the planned retirement of the related brand names, lower expected future growth rates, and ongoing integration initiatives. Prior to the reclassifications, the Company tested the indefinite-lived intangible assets for impairment and concluded that the carrying value of these assets was not less than the estimated fair value.
 Definite-lived intangible assets were as follows:

 2025
 2024

 Gross
Value
 Accumulated
Amortization
 Net
Value
 Gross
Value
 Accumulated
Amortization
 Net
Value

 Management contracts
 $
 1,255.3
 $
 ( 709.3)
 $
 546.0
 $
 1,758.8
 $
 ( 1,061.8)
 $
 697.0

 Trade names
 286.2
 ( 66.5)
 219.7
 367.8
 ( 115.9)
 251.9

 Developed software
 —
 —
 —
 14.4
 ( 12.7)
 1.7

 Total
 $
 1,541.5
 $
 ( 775.8)
 $
 765.7
 $
 2,141.0
 $
 ( 1,190.4)
 $
 950.6

 The Company recognized an insignificant impairment of a definite-lived intangible asset during fiscal year 2025. No impairment of definite-lived intangible assets was recognized during fiscal year 2024.

 Definite-lived intangible assets had a weighted-average remaining useful life of 8.6 years at September 30, 2025, with estimated remaining amortization expense as follows:

 for the fiscal years ending September 30,
 Amount

 2026
 $
 189.4

 2027
 136.8

 2028
 85.5

 2029
 42.1

 2030
 41.5

 Thereafter
 270.4

 Total
 $
 765.7

 Note 9 – Debt
 The disclosures below include details of the Company's debt, excluding that of CIPs. See Note 10 – Consolidated Investment Products for information related to the debt of these entities.
 Debt consisted of the following:

 2025
 Effective
Interest Rate
 2024
 Effective
Interest Rate

 Debt of Franklin Resources, Inc.

 $ 400 million 2.850 % senior notes due March 2025

 $
 —
 N/A
 $
 400.0
 2.97
 %

 $ 850 million 1.600 % senior notes due October 2030

 847.9
 1.74
 %
 847.5
 1.74
 %

 $ 350 million 2.950 % senior notes due August 2051

 348.1
 3.00
 %
 348.0
 3.00
 %

 Total debt of Franklin Resources, Inc.
 1,196.0
 1,595.5

 Debt of Legg Mason (a subsidiary of Franklin)

 $ 450 million 4.750 % senior notes due March 2026

 456.1
 1.80
 %
 469.5
 1.80
 %

 $ 550 million 5.625 % senior notes due January 2044

 717.4
 3.38
 %
 723.9
 3.38
 %

 Total debt of Legg Mason
 1,173.5
 1,193.4

 Debt issuance costs
 ( 7.5)
 ( 8.6)

 Total
 $
 2,362.0
 $
 2,780.3

 On March 31, 2025, the Company repaid all of the outstanding $ 400.0 million 2.850 % senior notes due March 2025 issued by Franklin Resources, Inc. at the principal amount plus accrued and unpaid interest of $ 5.7 million.
 On April 30, 2025, the Company entered into an Amended and Restated Revolving Credit Agreement (the "Amended and Restated Credit Agreement") with a five-year term and $ 1.1 billion of aggregate available borrowings. As of April 30, 2025, the $ 300.0 million of borrowings outstanding under the Company's prior credit facility were transferred to the Amended and Restated Credit Agreement. On September 5, 2025, the Company repaid all of the outstanding $ 300.0 million borrowings at the principal amount plus accrued interest of $ 5.5 million.
 At September 30, 2025, the Company had $ 500.0 million of short-term commercial paper available for issuance under an uncommitted private placement program which has been inactive since 2012.
 At September 30, 2025, Franklin's outstanding senior unsecured unsubordinated notes had an aggregate principal amount due of $ 1,200.0 million. The notes have fixed interest rates with interest payable semi-annually.
 At September 30, 2025, Legg Mason's outstanding senior unsecured unsubordinated notes had an aggregate principal amount due of $ 1,000.0 million. The notes have fixed interest rates with interest payable semi-annually. Franklin unconditionally and irrevocably guarantees all of the outstanding notes issued by Legg Mason.

 The Franklin and Legg Mason senior notes contain an optional redemption feature that allows the Company to redeem each series of notes prior to maturity in whole or in part at any time, at a make-whole redemption price. The indentures governing the senior notes contain limitations on the Company's ability and the ability of its subsidiaries to pledge voting stock or profit participating equity interests in its subsidiaries to secure other debt without similarly securing the notes equally and ratably. In addition, the indentures include requirements that must be met if the Company consolidates or merges with, or sells all or substantially all of its assets to another entity. The Amended and Restated Credit Agreement contains a financial performance covenant requiring that the Company maintain a consolidated net leverage ratio, measured as of the last day of each fiscal quarter, of no greater than 3.25 to 1.00. The Company was in compliance with all covenants at September 30, 2025.

 Note 10 – 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:

 2025
 2024

 $
 485.8
 $
 1,099.4

 Receivables
 313.1
 217.5

 12,278.8
 11,034.9

 Total Assets
 $
 13,077.7
 $
 12,351.8

 Liabilities

 Accounts payable and accrued expenses
 $
 1,063.0
 $
 861.3

 Debt
 9,937.3
 9,341.5

 Other liabilities
 17.5
 39.9

 Total liabilities
 11,017.8
 10,242.7

 Redeemable Noncontrolling Interests
 289.6
 687.8

 Stockholders' Equity

 Franklin Resources, Inc.'s interests
 1,220.6
 1,080.9

 Nonredeemable noncontrolling interests
 549.7
 340.4

 Total stockholders' equity
 1,770.3
 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:

 NAV as a
Practical
Expedient
 Total

 Cash and cash equivalents of CLOs
 $
 472.1
 $
 —
 $
 —
 $
 —
 $
 472.1

 Receivables of CLOs
 —
 113.0
 —
 —
 113.0

 Equity and debt securities
 393.2
 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

 NAV as a
Practical
Expedient
 Total

 as of September 30, 2024

 Cash and cash equivalents of CLOs
 $
 764.3
 $
 —
 $
 —
 $
 —
 $
 764.3

 Receivables of CLOs
 —
 149.6
 —
 —
 149.6

 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:

 2025
 2024

 Nonredeemable investments1

 Investments with unknown liquidation periods
 $
 114.7
 $
 49.0

 Redeemable investments2

 74.4
 138.1

 Unfunded commitments3

 14.0
 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.
 2 Investments 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:

 2025
 2024

 Balance at beginning of year
 $
 550.1
 $
 584.9

 Acquisition
 —
 29.6

 Gains (losses) included in investment and other income of consolidated investment products, net
 50.5
 ( 80.4)

 Purchases
 60.9
 57.2

 Sales
 ( 33.6)
 ( 29.8)

 Net consolidations (deconsolidations)
 12.2
 ( 12.5)

 Transfers into Level 3
 0.2
 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:

 Valuation Technique
 Significant Unobservable Inputs
 Range (Weighted Average1)

 Equity and debt securities
 $
 302.0
 Market pricing
 Private sale pricing
 $ 0.27 –$ 2,120.00 ($ 176.53) per share

 5.0 %– 75.0 % ( 23.9 %)

 225.9
 Market comparable companies
 Enterprise value/ Revenue multiple
 1.4 – 21.0 ( 9.5)

 6.0 %– 11.0 % ( 8.5 %)

 54.4
 Discounted cash flow
 Discount rate
 6.5 %– 13.0 % ( 6.8 %)

 18.7
 Option pricing model
 Volatility
 34.0 %– 60.9 % ( 38.2 %)

 9.1 %– 13.5 % ( 9.4 %)

 as of September 30, 2024
 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)

 0.1 %– 10.4 % ( 8.1 %)

 214.5
 Market pricing
 Private sale pricing
 $ 0.01 –$ 1,000.00 ($ 73.04) per share

 9.8 %– 17.5 % ( 11.5 %)

 44.0
 Discounted cash flow
 Discount rate
 6.8 %

 1 Based 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:

Level
 2025
 2024

Value
 Estimated
Value
 Estimated

 Financial Asset

 $
 13.7
 $
 13.7
 $
 335.1
 $
 335.1

 Financial Liabilities

 Debt of CLOs1

 2 or 3
 9,937.3
 9,786.0
 9,341.5
 9,167.3

 1 Substantially 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:

 for the fiscal years ending September 30,
 Amount

 2026
 $
 476.1

 2027
 83.8

 2028
 —

 2029
 —

 2030
 —

 Thereafter
 9,377.4

 Total
 $
 9,937.3

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

 2025
 2024

 Unpaid principal balance
 $
 10,641.0
 $
 9,371.9

 Difference between unpaid principal balance and fair value
 ( 43.3)
 ( 19.8)

 $
 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.

 Note 11 – Redeemable Noncontrolling Interests
 Changes in redeemable noncontrolling interests were as follows:

 for the fiscal years ended September 30, 2025, 2024 and 2023

 CIPs
 Minority Interests
 Total

 Balance at October 1, 2022
 $
 942.2
 $
 583.6
 $
 1,525.8

 77.4
 58.1
 135.5

 Net subscriptions (distributions) and other
 605.5
 ( 86.3)
 519.2

 Net deconsolidations
 ( 1,045.0)
 —
 ( 1,045.0)

 Adjustment to fair value
 —
 ( 109.4)
 ( 109.4)

 Balance at September 30, 2023
 $
 580.1
 $
 446.0
 $
 1,026.1

 80.2
 47.7
 127.9

 Net subscriptions (distributions) and other
 213.4
 ( 111.4)
 102.0

 Net deconsolidations
 ( 206.1)
 —
 ( 206.1)

 Acquisition
 20.2
 —
 20.2

 Adjustment to fair value
 —
 251.7
 251.7

 Balance at September 30, 2024
 $
 687.8
 $
 634.0
 $
 1,321.8

 Net income (loss)
 ( 94.9)
 42.2
 ( 52.7)

 Net subscriptions (distributions) and other
 317.5
 ( 31.9)
 285.6

 Net deconsolidations
 ( 620.8)
 —
 ( 620.8)

 Adjustment to fair value
 —
 248.1
 248.1

 Balance at September 30, 2025
 $
 289.6
 $
 892.4
 $
 1,182.0

 Note 12 – Nonconsolidated Variable Interest Entities

 VIEs for which the Company is not the primary beneficiary consist of sponsored funds and other investment products in which the Company has an equity ownership interest. The Company's maximum exposure to loss from these VIEs consists of equity investments, investment management and other fee receivables as follows:

 2025
 2024

 $
 1,274.5
 $
 1,074.4

 Receivables
 225.1
 226.0

 Total
 $
 1,499.6
 $
 1,300.4

 While the Company has no legal or contractual obligation to do so, it routinely makes cash investments in the course of launching sponsored funds. As it has done in the past, the Company also may voluntarily elect to provide its sponsored funds with additional direct or indirect financial support based on its business objectives. The Company did not provide financial or other support to its sponsored funds assessed as VIEs during fiscal years 2025 and 2024.

 Note 13 – Taxes on Income
 Taxes on income were as follows:

 2025
 2024
 2023

 Current expense

 Federal
 $
 140.6
 $
 212.0
 $
 148.1

 State
 51.5
 54.0
 55.6

 Non-U.S.
 93.0
 73.9
 67.1

 Deferred (benefit) expense
 ( 47.2)
 ( 124.6)
 41.5

 Total
 $
 237.9
 $
 215.3
 $
 312.3

 Income before taxes consisted of the following:

 2025
 2024
 2023

 U.S.
 $
 538.2
 $
 286.3
 $
 819.2

 Non-U.S. and other1

 248.6
 536.9
 518.8

 Total
 $
 786.8
 $
 823.2
 $
 1,338.0

 1 Other includes income (loss) from consolidated investment products and amounts not subject to tax.
 The significant components of deferred tax assets and deferred tax liabilities were as follows:

 2025
 2024

 Deferred Tax Assets

 Capitalized mixed service costs
 $
 127.5
 $
 162.6

 Net operating loss and state credit carry-forwards
 328.3
 325.8

 Deferred compensation and benefits
 209.3
 210.5

 Foreign tax credit carry-forwards
 70.4
 81.6

 Operating lease liability

 199.1
 186.4

 Debt premium
 43.7
 48.6

 Other
 118.9
 116.1

 Total deferred tax assets
 1,097.2
 1,131.6

 Valuation allowance
 ( 297.1)
 ( 290.5)

 Deferred tax assets, net of valuation allowance
 800.1
 841.1

 Deferred Tax Liabilities

 Goodwill and other purchased intangibles
 697.7
 800.8

 Right of use asset

 151.0
 160.3

 Other
 129.7
 88.8

 Total deferred tax liabilities
 978.4
 1,049.9

 Net Deferred Tax Liability
 $
 178.3
 $
 208.8

 Deferred income tax assets and liabilities that relate to the same tax jurisdiction are presented net on the consolidated balance sheets. The components of the net deferred tax liability were classified in the consolidated balance sheets as follows:

 2025
 2024

 Other assets
 $
 83.3
 $
 76.1

 Deferred tax liabilities
 261.6
 284.9

 Net Deferred Tax Liability
 $
 178.3
 $
 208.8

 Included in the Company's net deferred tax liability were the deferred tax effects associated with the fair value of assets acquired and liabilities assumed from the acquisition of Legg Mason and acquired attributes that carry over to post-acquisition tax periods, including U.S. state and foreign net operating losses and foreign tax credits. Utilization of the U.S. state net operating losses and federal credit carry-forwards may be subject to annual limitations due to ownership change provisions under Section 382 of the Internal Revenue Code. Foreign tax credits can only be used to offset tax attributable to foreign source income.
 At September 30, 2025, there were $ 121.4 million of non-U.S. tax effected net operating loss and capital loss carry-forwards which expire between fiscal years 2026 and 2045. In addition, there were $ 118.3 million in tax effected state net operating loss carry-forwards that expire between fiscal years 2026 and 2044, with some having an indefinite carry-forward period. The Company also has federal net operating losses of $ 9.5 million, the majority of which will carry-forward indefinitely and $ 70.4 million of foreign tax credit carry-forwards that expire between fiscal years 2026 and 2029.
 The valuation allowance increased $ 6.6 million in fiscal year 2025, primarily related to non-U.S. net operating loss utilization. At September 30, 2025, the valuation allowance of $ 297.1 million was related to $ 172.3 million for federal, state, and foreign net operating loss carry-forwards, $ 52.3 million due to uncertainty of realizing the benefit of foreign tax credits, $ 45.0 million for capital losses, and $ 27.5 million for other state deferred taxes.

 A reconciliation of the amount of tax expense at the federal statutory rate and taxes on income as reflected in the consolidated statements of income is as follows:

 2025
 2024
 2023

 Federal taxes at statutory rate
 $
 165.2
 21.0
 %
 $
 172.9
 21.0
 %
 $
 281.0
 21.0
 %

 State taxes, net of federal tax effect

 25.5
 3.2
 %
 42.8
 5.2
 %
 71.3
 5.3
 %

 Tax reserve (release) for audit settlements, net of valuation allowance

 ( 4.8)
 ( 0.6
 %)
 0.5
 0.1
 %
 ( 11.4)
 ( 0.9
 %)

 Effect of net income attributable to noncontrolling interests
 ( 5.0)
 ( 0.6
 %)
 ( 29.7)
 ( 3.6
 %)
 ( 22.0)
 ( 1.6
 %)

 Effect of non-U.S. operations
 44.5
 5.7
 %
 4.0
 0.5
 %
 ( 14.7)
 ( 1.1
 %)

 Capital loss on investments, net of valuation allowance

 7.5
 1.0
 %
 7.4
 0.9
 %
 ( 8.8)
 ( 0.7
 %)

 Foreign tax credit valuation allowance release

 ( 12.6)
 ( 1.6)
 %
 5.1
 0.6
 %
 7.2
 0.5
 %

 Other

 17.6
 2.2
 %
 12.3
 1.5
 %
 9.7
 0.8
 %

 Tax Provision

 $
 237.9
 30.2
 %
 $
 215.3
 26.2
 %
 $
 312.3
 23.3
 %

 A reconciliation of the beginning and ending balances of gross unrecognized tax benefits is as follows:

 2025
 2024
 2023

 Balance at beginning of year
 $
 133.5
 $
 138.8
 $
 168.7

 Additions for tax positions of prior years
 2.5
 1.2
 6.1

 Reductions for tax positions of prior years
 ( 1.2)
 ( 4.9)
 ( 14.9)

 Tax positions related to the current year
 11.1
 12.1
 13.3

 Settlements with taxing authorities
 ( 17.5)
 ( 6.6)
 ( 19.9)

 Expirations of statute of limitations
 ( 16.5)
 ( 7.1)
 ( 14.5)

 Balance at End of Year
 $
 111.9
 $
 133.5
 $
 138.8

 If recognized, $ 111.2 million for 2025, $ 132.8 million for 2024 and $ 132.2 million for 2023 would favorably affect the Company's effective income tax rate in future periods.
 The Company accrues interest and penalties related to unrecognized tax benefits in interest expense and general, administrative and other expenses. Accrued interest on uncertain tax positions at September 30, 2025 and 2024 was $ 25.8 million and $ 23.7 million, and is not presented in the unrecognized tax benefits table above. Accrued penalties at September 30, 2025 and 2024 were $ 1.7 million and $ 1.6 million.
 The Company files a consolidated U.S. federal income tax return, multiple U.S. state and local income tax returns, and income tax returns in multiple non-U.S. jurisdictions. The Company is subject to examination by the taxing authorities in these jurisdictions. The Company's major tax jurisdictions and the tax years for which the statutes of limitations have not expired are as follows: India 2003 to 2025; Brazil 2020 to 2025; Luxembourg 2019 to 2025; U.K. 2021 to 2025; U.S. federal 2020 and 2022 to 2025; the City of New York 2019 to 2025; and States of California, Florida, Massachusetts and New York 2020 to 2025.
 The Company has ongoing litigation and examinations in various stages, including in the States of California and City of New York, and in Brazil, India and Italy. Examination outcomes and the timing of settlements are subject to significant uncertainty. Such settlements may involve some or all of the following: the payment of additional taxes, the adjustment of deferred taxes and/or the recognition of unrecognized tax benefits. The Company has recognized a tax benefit only for those positions that meet the more-likely-than-not recognition threshold. It is reasonably possible that the total unrecognized tax benefit as of September 30, 2025 could decrease by an estimated $ 12.0 million within the next twelve months as a result of the expiration of statutes of limitations in the U.S. federal and certain U.S. state and local and non-U.S. tax jurisdictions, and potential settlements with U.S. states and non-U.S. taxing authorities.

 The Tax Cuts and Jobs Act which was enacted into law in the U.S. in December 2017, includes various changes to the tax law, including a permanent reduction in the corporate income tax rate and assessment of a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiaries' earnings. The remaining payment for the Company's federal portion of the transition tax liability of $ 231.6 million will be made in fiscal year 2026.
 On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law. While the Company is in the process of evaluating the impact of the Act on its consolidated financial statements, it does not expect there to be any material impact thereon.

 Note 14 – Leases
 Lessee Arrangements
 Lease expense was as follows:

 2025
 2024
 2023

 Operating lease cost

 $
 137.3
 $
 188.3
 $
 124.1

 Variable lease cost
 11.2
 10.3
 5.8

 Finance lease cost
 1.0
 0.8
 0.6

 Less: sublease income
 ( 4.3)
 ( 13.1)
 ( 25.0)

 Total lease expense
 $
 145.2
 $
 186.3
 $
 105.5

 Supplemental cash flow information related to leases was as follows:

 2025
 2024
 2023

 Operating cash flows from operating leases included in the measurement of operating lease liabilities
 $
 45.1
 $
 109.6
 $
 125.6

 ROU assets obtained in exchange for new/modified operating lease liabilities
 31.2
 448.9
 45.4

 The weighted-average remaining lease term and weighted-average discount rate for operating lease liabilities were as follows:

 2025
 2024

 Weighted-average remaining lease term

 11.1 years
 11.4 years

 Weighted-average discount rate

 5.2
 %
 5.0
 %

 The maturities of the liabilities were as follows:

 Amount

 for the fiscal years ending September 30,

 2026
 $
 143.1

 2027
 137.0

 2028
 125.3

 2029
 117.6

 2030
 108.7

 Thereafter
 723.7

 Total lease payments
 1,355.4

 Less: interest
 ( 354.8)

 Operating lease liabilities
 $
 1,000.6

 Lessor Arrangements
 The Company leases excess owned space in its San Mateo, California corporate headquarters and other office buildings, primarily in the U.S., to third parties, and generally include one or more options to renew. The Company subleases excess leased office spaces to various firms, primarily in the U.S., and generally include options to renew or terminate within a specified period.
 The maturities of lease payments due to the Company as of September 30, 2025 were as follows:

 Subleases
 Leases

 for the fiscal years ending September 30,

 2026
 $
 6.6
 $
 50.5

 2027
 10.5
 44.1

 2028
 10.3
 31.0

 2029
 10.2
 31.4

 2030
 10.3
 30.0

 Thereafter
 15.6
 35.8

 Total
 $
 63.5
 $
 222.8

 Note 15 – Commitments and Contingencies
 Legal Proceedings
 India Credit Fund Closure Matters. Effective April 24, 2020, Franklin Templeton Trustee Services Private Limited ("FTTS"), a subsidiary of Franklin, announced its decision to wind up six fixed income mutual fund schemes of the Franklin Templeton Mutual Fund in India (referred to herein as the "Funds"), closing the Funds to redemptions. At the time, the Funds had collective AUM of INR 25,648.3 crore (approximately $ 3.4 billion). In connection with the wind-up decision, FTTS sought to convene unitholder meetings for the Funds to approve the appointment of a liquidator, and the asset management company to the Funds, Franklin Templeton Asset Management (India) Private Limited ("FTAMI"), ceased earning investment management fees on the Funds.
 In May and June 2020, certain Fund unitholders and others challenged the wind-up decision by filing legal petitions in India against a number of respondents, including Franklin, its subsidiaries FTTS, FTAMI, and Templeton International, Inc., as sponsor of the Franklin Templeton Mutual Fund, and related individuals (collectively, the "Company Respondents"), the Securities and Exchange Board of India ("SEBI"), and other governmental entities. The petitioners alleged that the Company Respondents violated various SEBI regulations, mismanaged the Funds, misrepresented or omitted certain information relating to the Funds, and/or engaged in other alleged misconduct. The petitioners requested a wide range of relief, including, among other items, an order quashing the winding up notices and blocking the unitholder votes, initiating investigations into the Company Respondents, and allowing the unitholder petitioners to redeem their investments with interest. An interim injunction order staying the operation and implementation of the unitholder voting process was issued and the petitions were transferred to the High Court of Karnataka for further consolidated proceedings. The court upheld the decision taken by FTTS to wind up the Funds while finding that unitholder approval was required to implement the decision. Cross appeals from the judgment were then filed in the Supreme Court of India. In the interim, FTTS proceeded to obtain approval from the majority of the voting unitholders for winding up the six Funds and in February 2021, the Supreme Court confirmed the results and appointed a third-party asset manager to serve as the liquidator and begin cash distributions to unitholders. The additional issues on appeal remain pending.
 By September 2023, all performing securities across the Funds were liquidated and an aggregate of INR 27,508.1 crore (approximately $ 3.3 billion) was distributed to Fund unitholders, exceeding the aggregate value of the Funds' AUM at the date of the wind-up announcement, reported above.
 Separately, following the completion of a forensic audit/inspection, in late November and early December 2020, SEBI initiated regulatory proceedings by issuing show cause notices against FTAMI, FTTS and certain FTAMI employees (including in their officer or director capacities), alleging certain deficiencies and areas of non-compliance in the management of the Funds. In June 2021, SEBI issued orders against FTAMI, FTTS, and the FTAMI employee respondents, finding violations of certain regulatory provisions, including with respect to similarity in investment strategies

 among the Funds, calculation of duration and valuation of portfolio securities, deficiencies in documentation relating to investment diligence and investment terms, and portfolio risk management. SEBI's orders include, as applicable, aggregate monetary penalties of INR 20.0 crore (approximately $ 2.4 million); disgorgement of investment management and advisory fees, together with interest through the date of SEBI's order, totaling INR 512.5 crore (approximately $ 61.7 million), with continuing accrual of 12 % interest until paid; and a prohibition on FTAMI from launching new fixed income funds in India for a two-year period. The respondents filed appeals, as well as applications to stay enforcement of SEBI's orders pending resolution of the appeals, with the Securities Appellate Tribunal (the "SAT") in India, which stay applications were granted in June and July 2021, subject to respondents' deposit in escrow of a portion of the ordered penalties for an aggregate deposit made of INR 257.5 crore (approximately $ 34.7 million). The SAT appeals remain pending and in the interim, SEBI has approved FTAMI's launch of certain new fixed income funds.
 The Company has also responded to related inquiries and investigations commenced by certain governmental agencies in India that remain pending, including a "first information report" (the preliminary step in an investigation) registered by the Economic Offences Wing of the Chennai police department in or around September 2020 against certain of the Company Respondents in connection with a complaint by certain Fund unitholders, as well as a related investigation by India's Enforcement Directorate commenced in or around April 2021.
 The Company strongly believes that the decision taken by FTTS to wind up the Funds was in the best interests of unitholders and allowed for the orderly liquidation and distribution of Fund assets as described above. The Company further believes that it has meritorious defenses to the outstanding claims in the pending proceedings and intends to continue vigorously defending against the claims. The Company cannot at this time predict the eventual outcome of the matters described above or reasonably estimate the possible loss or range of loss that may arise from any final outcome of such matters, including due to the complexities and uncertainty involved in the appeals and the various questions of law and fact at issue.
 Western Asset Management Investigations and Litigation. As previously disclosed, the Company launched an internal investigation into certain trade allocations of treasury derivatives in select WAM managed accounts. WAM received notification of parallel investigations by the SEC and the U.S. Department of Justice ("DOJ"). WAM also received notice of an investigation into these trading activities by the CFTC. On June 30, 2025, the CFTC informed WAM that it closed its investigation. The SEC and DOJ investigations remain ongoing. The Company and WAM have fully cooperated, and will continue to fully cooperate with the SEC and DOJ investigations. Ken Leech, the former co-Chief Investment Officer of WAM, received a "Wells Notice" from the staff of the SEC in August 2024, and was placed on administrative leave at that time. Mr. Leech retired and is no longer with the Company, as previously disclosed. On November 25, 2024, the SEC filed a complaint in the United States District Court for the Southern District of New York against Mr. Leech alleging violations of certain laws related to trade allocations. Concurrently, the DOJ filed an indictment with the United States District Court for the Southern District of New York against Mr. Leech for similar allegations and for false statements made to the SEC.
 On July 3, 2025, Franklin, WAM and Ken Leech were named as defendants in a lawsuit filed by the Western PA Electrical Employees Insurance Trust Fund in the U.S. District Court for the Western District of Pennsylvania seeking class certification on behalf of shareholders of two funds managed by WAM for the period January 1, 2021 through October 31, 2023. The plaintiff is pursuing claims under the Securities Exchange Act of 1934 against all defendants in connection with trade allocations made by Mr. Leech in that period that are also the subject of the investigations reported above. The plaintiff is seeking, among other things, damages, interest, and costs and expenses, including attorneys' fees.
 Franklin Templeton 401(k) Retirement Plan Litigation. On July 22, 2025, Franklin and the Franklin Templeton 401(k) Retirement Plan Committee were named as defendants in a lawsuit filed by certain former employees in the U.S. District Court for the Northern District of California. The plaintiffs seek to represent a class of participants and beneficiaries of the Franklin Templeton 401(k) Retirement Plan (the "Plan") who were invested in funds managed by the Company at any time on or after July 22, 2019. The plaintiffs are pursuing claims under the Employee Retirement Income Security Act of 1974 for alleged breaches of fiduciary duties and failure to monitor the Plan fiduciaries in connection with the Plan's inclusion of certain proprietary funds as investment options. The plaintiffs are seeking, among other things, damages, disgorgement, removal of certain investments from the Plan, removal and replacement of the Plan's fiduciaries, attorneys' fees and costs, and pre-judgment interest.

 The lawsuits reported above against the Company are in their preliminary stages. Management believes the claims made in the lawsuits are without merit and the Company intends to defend against them vigorously. The Company cannot predict the outcome of these lawsuits or estimate any reasonably possible loss or range of loss that may arise from any negative outcome.
 Other Litigation and Regulatory Matters. The Company is from time to time involved in other litigation relating to claims arising in the normal course of business. Management is of the opinion that the ultimate resolution of such claims will not materially affect the Company's business, financial position, results of operations or liquidity. In management's opinion, an adequate accrual has been made as of September 30, 2025 to provide for any probable losses that may arise from such matters for which the Company could reasonably estimate an amount.
 Indemnifications and Guarantees
 In the ordinary course of business or in connection with certain acquisition agreements, the Company enters into contracts that provide for indemnifications by the Company in certain circumstances. In addition, certain Company entities guarantee certain financial and performance-related obligations of various Franklin subsidiaries. The Company is also subject to certain legal requirements and agreements providing for indemnifications of directors, officers and personnel against liabilities and expenses they may incur under certain circumstances in connection with their service. The terms of these indemnities and guarantees vary pursuant to applicable facts and circumstances, and from agreement to agreement. Future payments for claims against the Company under these indemnities or guarantees could negatively impact the Company's financial condition. In management's opinion, no material loss was deemed probable or reasonably possible pursuant to such indemnification agreements and/or guarantees as of September 30, 2025.
 Other Commitments and Contingencies
 While the Company has no legal or contractual obligation to do so, it routinely makes cash investments in the course of launching sponsored funds. At September 30, 2025, the Company had $ 520.8 million of committed capital contributions which relate to discretionary commitments to invest in sponsored funds and other investment products and entities, including CIPs. These unfunded commitments are not recorded in the Company's consolidated balance sheet.

 Note 16 – Stock-Based Compensation
 The Company's stock-based compensation plans consist of the Amended and Restated Annual Incentive Compensation Plan (the "AIP"), the 2002 Universal Stock Incentive Plan, as amended and restated (the "USIP"), the amended and restated Franklin Resources, Inc. 1998 Employee Stock Investment Plan (the "ESIP"), and the Amended and Restated Franklin Resources, Inc. 2017 Equity Incentive Plan (the "EIP").
 Stock-based compensation expenses were as follows:

 2025
 2024
 2023

 Stock and stock unit awards
 $
 207.9
 $
 240.3
 $
 174.7

 Phantom unit awards
 11.8
 13.8
 33.2

 Employee stock investment plan
 6.9
 5.8
 7.9

 Total
 $
 226.6
 $
 259.9
 $
 215.8

 Stock and Stock Unit Awards
 Under the terms of the AIP, eligible employees may receive cash, equity awards and/or mutual fund unit awards generally based on the performance of the Company and/or its funds, and the individual employee. The USIP and EIP provide for the issuance of the Company's common stock for various stock-related awards to officers, directors and employees. In February 2024, the Company's stockholders approved an amendment and restatement of the USIP increasing the number of shares authorized by 25.0 million shares to a total of 165.0 million shares. There are 23.0 million shares authorized under the EIP. At September 30, 2025, 17.6 million shares and 16.9 million shares were available for grant under the USIP and EIP.

 Stock awards entitle holders to the right to sell the underlying shares of the Company's common stock once the awards vest. Stock unit awards entitle holders to receive the underlying shares of common stock once the awards vest. Awards vest based on the passage of time or the achievement of predetermined Company financial performance goals.
 Stock and stock unit award activity was as follows:

 (shares in thousands)
 Time-Based
Shares
 Performance-
Based Shares
 Total
Shares
 Weighted-Average
Grant-Date

 for the fiscal year ended September 30, 2025

 Nonvested balance at beginning of year

 16,594
 3,314
 19,908
 $
 24.03

 Granted
 8,553
 8,722
 20.97

 Vested
 ( 9,491)
 ( 166)
 ( 9,657)
 23.74

 Forfeited/canceled
 ( 697)
 ( 2,964)
 ( 3,661)
 22.60

 Nonvested Balance at End of Year

 14,959
 15,312
 $
 22.81

 Total unrecognized compensation expense related to nonvested stock unit awards was $ 176.2 million at September 30, 2025. This expense is expected to be recognized over a remaining weighted-average vesting period of 1.6 years. The weighted-average grant-date fair values of stock and stock unit awards granted during fiscal years 2025, 2024 and 2023 were $ 20.97, $ 25.60 and $ 22.74 per share. The total fair value of stock and stock unit awards vested during the same periods was $ 234.3 million, $ 180.4 million and $ 210.4 million.
 The Company may repurchase shares in connection with vesting of stock and stock unit awards. Also, in order to pay taxes due in connection with the vesting of employee and executive officer stock and stock unit awards, shares are repurchased using a net stock issuance method.
 Employee Stock Investment Plan
 The ESIP allows eligible participants to buy shares of the Company's common stock at a discount of its market value on defined dates. A total of 1.4 million shares were issued under the ESIP during fiscal year 2025, and 0.3 million shares were reserved for future issuance at September 30, 2025.

 Note 17 – Defined Contribution Plans
 The Company sponsors a 401(k) plan which covers substantially all U.S. employees meeting certain employment requirements. Participants may contribute up to 50 % of their eligible salary and up to 100 % of the cash portion of their year-end bonus, as defined by the plan and subject to Internal Revenue Code limitations, each year to the plan. The Company makes a matching contribution equal to 85 % of eligible compensation contributed by participants. Certain of the Company's non-U.S. subsidiaries also sponsor defined contribution plans primarily for the purpose of providing deferred compensation incentives for employees and to comply with local regulatory requirements. The total expenses recognized for defined contribution plans were $ 104.7 million, $ 102.3 million and $ 93.0 million for fiscal years 2025, 2024 and 2023.

 Note 18 – Segment and Geographic Information
 The Company has one operating segment, which provides investment management and related services.
 The chief operating decision maker ("CODM"), identified as the Company's Chief Executive Officer, assesses the performance of the business and allocates resources primarily based on consolidated net income attributable to Franklin Resources, Inc. This measure is used to support decision making activities and assess the performance of the operating segment.
 The CODM regularly reviews the significant segment expenses categories that are presented on the Company's consolidated statements of income. Total assets on the consolidated balance sheets is the measure of segment assets.
 See Note 4 – Revenues for total operating revenues disaggregated by geographic location.
 See below for the long-lived assets disaggregated by geographic location.

 2025
 2024

 Property and Equipment, Net

 United States
 $
 764.1
 $
 758.4

 Europe, Middle East and Africa
 150.6
 149.2

 29.4
 33.5

 Americas excluding United States
 5.0
 5.3

 Total
 $
 949.1
 $
 946.4

 Note 19 – Investment and Other Income, Net
 Investment and other income, net consisted of the following:

 2025
 2024
 2023

 Dividend and interest income
 $
 141.4
 $
 176.9
 $
 159.9

 Gains (losses) on investments, net
 ( 37.6)
 57.6
 39.5

 Income from investments in equity method investees
 78.0
 137.5
 45.4

 Gains (losses) on derivatives, net
 ( 7.8)
 ( 16.2)
 ( 15.1)

 Rental income
 44.1
 43.7
 46.3

 Foreign currency exchange losses, net
 ( 11.6)
 ( 19.9)
 ( 26.7)

 Other, net
 6.3
 15.9
 13.0

 Investment and Other Income, Net

 $
 212.8
 $
 395.5
 $
 262.3

 Substantially all dividend income was generated by investments in nonconsolidated sponsored funds. Gains (losses) on investments, net consists primarily of realized and unrealized gains (losses) on equity securities measured at fair value.
 Net gains (losses) recognized on equity securities measured at fair value and trading debt securities that were held by the Company at September 30, 2025, 2024 and 2023 were $ 5.4 million, $ 108.1 million, and $ 66.1 million.

 Note 20 – Accumulated Other Comprehensive Income (Loss)
 Changes in accumulated other comprehensive income (loss) by component were as follows:

 Currency
Translation
Adjustments
 Unrealized
Losses on
Defined Benefit
Plans
 Unrealized
Gains on
 Total

 as of and for the fiscal years ended
September 30, 2025, 2024 and 2023

 Balance at October 1, 2022
 $
 ( 615.1)
 $
 ( 6.3)
 $
 0.4
 $
 ( 621.0)

 Other comprehensive income (loss)

 Other comprehensive income (loss) before reclassifications, net of tax
 108.5
 ( 0.6)
 0.2
 108.1

 Reclassifications to compensation and benefits expense, net of tax
 —
 ( 0.7)
 —
 ( 0.7)

 Reclassifications to net investment and other income, net of tax
 4.3
 —
 —
 4.3

 Total other comprehensive income (loss)
 112.8
 ( 1.3)
 0.2
 111.7

 Balance at September 30, 2023
 $
 ( 502.3)
 $
 ( 7.6)
 $
 0.6
 $
 ( 509.3)

 Other comprehensive income (loss)

 Other comprehensive income (loss) before reclassifications, net of tax
 89.8
 ( 0.3)
 ( 0.1)
 89.4

 Reclassifications to compensation and benefits expense, net of tax
 —
 0.4
 —
 0.4

 Total other comprehensive income (loss)
 89.8
 0.1
 ( 0.1)
 89.8

 Balance at September 30, 2024
 $
 ( 412.5)
 $
 ( 7.5)
 $
 0.5
 $
 ( 419.5)

 Other comprehensive income (loss)

 Other comprehensive income (loss) before reclassifications, net of tax
 ( 21.3)
 ( 11.3)
 0.1
 ( 32.5)

 Reclassifications to compensation and benefits expense, net of tax
 —
 2.0
 —
 2.0

 Reclassifications to net investment and other income, net of tax
 2.9
 —
 —
 2.9

 Total other comprehensive income (loss)
 ( 18.4)
 ( 9.3)
 0.1

 Balance at September 30, 2025
 $
 ( 430.9)
 $
 ( 16.8)
 $
 0.6
 $
 ( 447.1)

 Note 21 – Subsequent Event
 On October 1, 2025, the Company acquired Apera Asset Management for cash consideration of 65.2 million net of closing adjustments. In addition, the Company will pay up to 125.0 million in cash through the fifth anniversary of the closing date based on achieving revenue targets.

 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
 Not applicable.

 Item 9A. Controls and Procedures.
 The Company's management evaluated, with the participation of the Company's principal executive and principal financial officers, the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of September 30, 2025. Based on their evaluation, the Company's principal executive and principal financial officers concluded that the Company's disclosure controls and procedures as of September 30, 2025 were designed and are functioning effectively to provide reasonable assurance that the information required to be disclosed by the Company in reports filed under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission's ("SEC") rules and forms, and (ii) accumulated and communicated to management, including the principal executive and principal financial officers, as appropriate, to allow timely decisions regarding disclosure.
 There has been no change in the Company's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the Company's fiscal quarter ended September 30, 2025, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
 Management's Report on Internal Control over Financial Reporting and the Report of Independent Registered Public Accounting Firm are set forth in Item 8 of Part II of this Annual Report on Form 10 K, which is incorporated herein by reference.
 The effectiveness of the Company's internal control over financial reporting as of September 30, 2025 has been audited by PricewaterhouseCoopers LLP, the independent registered public accounting firm that audits the Company's consolidated financial statements, as stated in their report which expresses an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of September 30, 2025.

 Item 9B. Other Information.
 Rule 10b5-1 Trading Plans
 During the fiscal quarter ended September 30, 2025, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of Franklin adopted or terminated a " Rule 10b5-1 trading arrangement " or " non-Rule 10b5-1 trading arrangement " as each term is defined in Item 408 of Regulation S-K.

 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
 Not applicable.

 Item 10. Directors, Executive Officers and Corporate Governance.
 The information required by this Item 10 with respect to executive officers of Franklin is contained at the end of Part I of this Annual Report under the heading "Information About Our Executive Officers."
 Code of Ethics. Franklin has adopted a Code of Ethics and Business Conduct (the "Code of Ethics") that applies to Franklin's principal executive officer, principal financial officer, principal accounting officer, controller, and any persons performing similar functions, as well as all directors, officers and employees of Franklin and its subsidiaries and affiliates. A copy of the Code of Ethics is filed as an exhibit to this Annual Report and is posted on our website at www.franklinresources.com under "Corporate Governance." A copy of the Code of Ethics is available in print free of charge to any stockholder who requests a copy. Interested parties may address a written request for a printed copy of the Code of Ethics to: Secretary, Franklin Resources, Inc., One Franklin Parkway, San Mateo, California 94403-1906. We intend to satisfy the disclosure requirement regarding any amendment to, or a waiver from, a provision of the Code of Ethics for Franklin's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, by posting such information on our website.

 Insider Trading Policy. Franklin has adopted an insider Trading Blackout Policy (the "Trading Blackout Policy") that applies to all designated executive officers, directors, employees and temporary employees of Franklin and our subsidiaries and affiliates. The Trading Blackout Policy is designed to promote compliance with insider trading laws, rules and regulations with respect to the purchase, sale and/or other dispositions of Franklin's securities, as well as the applicable rules and regulations of the New York Stock Exchange. The Trading Blackout Policy addresses the implementation of certain trading blackout periods in Franklin' securities (including common stock, debt, options and other related derivative securities) for covered persons. A copy of the Trading Blackout Policy is filed as an exhibit to this Annual Report.
 The other information required by this Item 10 is incorporated by reference from the information to be provided under the sections titled "Proposal No. 1: Election of Directors" and "Information about the Board and its Committees – The Audit Committee" from Franklin's definitive proxy statement for its annual meeting of stockholders to be filed with the SEC within 120 days after September 30, 2025 ("2026 Proxy Statement").

 Item 11. Executive Compensation.
 The information required by this Item 11 is incorporated by reference from the information to be provided under the sections of our 2026 Proxy Statement titled "Director Fees," "Compensation Discussion and Analysis" and "Executive Compensation."

 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
 The information required by this Item 12 is incorporated by reference from the information to be provided under the sections of our 2026 Proxy Statement titled "Stock Ownership of Certain Beneficial Owners," "Stock Ownership and Stock-Based Holdings of Directors and Executive Officers" and "Executive Compensation – Equity Compensation Plan Information."

 Item 13. Certain Relationships and Related Transactions, and Director Independence.
 The information required by this Item 13 is incorporated by reference from the information to be provided under the sections of our 2026 Proxy Statement titled "Proposal No. 1: Election of Directors – General," "Corporate Governance – Director Independence Standards" and "Certain Relationships and Related Transactions."

 Item 14. Principal Accountant Fees and Services.
 The information required by this Item 14 is incorporated by reference from the information to be provided under the section of our 2026 Proxy Statement titled "Fees Paid to Independent Registered Public Accounting Firm."

 Item 15. Exhibits and Financial Statement Schedules.

 (a)(1)
 The financial statements filed as part of this report are listed in Item 8 of this Annual Report.

 (a)(2)
 No financial statement schedules are required to be filed as part of this report because all such schedules have been omitted. Such omission has been made on the basis that information is provided in the financial statements, or in the related notes thereto, in Item 8 of this Annual Report or is not required to be filed as the information is not applicable.

 (a)(3)
 The exhibits listed on the Exhibit Index to this Annual Report are incorporated herein by reference.

 Item 16. Form 10 K Summary.
 None.

 EXHIBIT INDEX

 Exhibit No.

 Description

 3.1
 Certificate of Incorporation of Registrant, as filed November 28, 1969, incorporated by reference to Exhibit (3)(i) to our Annual Report on Form 10-K for the fiscal year ended September 30, 1994 (File No. 001-09318) (the "1994 Annual Report")

 3.2
 Certificate of Amendment of Certificate of Incorporation of Registrant, as filed March 1, 1985, incorporated by reference to Exhibit 3(ii) to the 1994 Annual Report

 3.3
 Certificate of Amendment of Certificate of Incorporation of Registrant, as filed April 1, 1987, incorporated by reference to Exhibit 3(iii) to the 1994 Annual Report

 3.4
 Certificate of Amendment of Certificate of Incorporation of Registrant, as filed February 2, 1994, incorporated by reference to Exhibit 3(iv) to the 1994 Annual Report

 3.5
 Certificate of Amendment of Certificate of Incorporation of Registrant, as filed February 4, 2005, incorporated by reference to Exhibit (3)(i)(e) to our Quarterly Report on Form 10-Q for the period ended December 31, 2004 (File No. 001-09318)

 3.6
 Amended and Restated Bylaws of Registrant (as adopted and effective July 8, 2025), incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on July 9, 2025 (File No. 001-09318)

 4.1
 Description of Registrant's Securities, incorporated by reference to Exhibit 4.16 to our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 (File No. 001-09318)

 4.2
 Indenture, dated as of May 19, 1994, between Registrant and The Bank of New York Mellon Trust Company, N.A. (as successor to Chemical Bank), as trustee, incorporated by reference to Exhibit 4 to our Registration Statement on Form S-3 filed on April 14, 1994 (File No. 033-53147)

 4.3
 First Supplemental Indenture, dated October 9, 1996, between Registrant and The Bank of New York Mellon Trust Company, N.A. (as successor to The Chase Manhattan Bank), as trustee, incorporated by reference to Exhibit 4.2 to our Registration Statement on Form S-3 filed on October 4, 1996 (File No. 333-12101)

 4.4
 Second Supplemental Indenture, dated May 20, 2010, between Registrant and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.1 to our Current Report on Form 8 K filed on May 20, 2010 (File No. 001-09318)

 4.5
 Indenture, dated as of October 6, 2020, between Registrant and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.3 to our Registration Statement on Form S-3ASR filed on October 6, 2020 (File No. 033-249350)

 4.6
 Officer's Certificate, dated October 19, 2020 (inclusive of the form of note of Registrant's 1.600% Notes due 2030), incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed on October 19, 2020 (File No. 011-09318)

 4.7
 Base Indenture, dated as of January 22, 2014, for Senior Notes between Legg Mason, Inc. and The Bank of New York Mellon, as trustee, incorporated by reference to Exhibit 4.1 to Legg Mason's Registration Statement on Form S-3ASR filed on February 19, 2016 (File No. 333-209616)

 4.8
 First Supplemental Indenture, dated as of January 22, 2014 (inclusive of the form of note of Legg Mason's 5.625% Senior Notes due 2044), between Legg Mason, Inc. and The Bank of New York Mellon, as trustee, incorporated by reference to Exhibit 4.2 to Legg Mason's Current Report on Form 8-K filed on January 22, 2014 (File No. 001-08529)

 Exhibit No.

 Description

 4.9
 Second Supplemental Indenture, dated as of June 26, 2014, between Legg Mason, Inc. and The Bank of New York Mellon, as trustee, incorporated by reference to Exhibit 4.1 to Legg Mason's Current Report on Form 8-K filed on June 26, 2014 (File No. 001-08529)

 4.10
 Fourth Supplemental Indenture, dated as of March 22, 2016 (inclusive of the form of note of Legg Mason's 4.750% Senior Notes due 2026), between Legg Mason, Inc. and The Bank New York Mellon, as trustee, incorporated by reference to Exhibit 4.2 to Legg Mason's Current Report on Form 8-K filed on March 22, 2016 (File No. 001-08529)

 4.11
 Registrant Parent Guarantee dated August 2, 2021, incorporated by reference to Exhibit 4.1 to our Quarterly Report on Form 10-Q for the period ended June 30, 2021 (File No. 001-09318)

 4.12
 Officer's Certificate, dated August 12, 2021 (inclusive of the form of additional note of Registrant's 1.600% Notes due 2030 and form of note of Registrant's 2.950% Notes due 2051), incorporated by reference to Exhibit 4.3 to our Current Report on Form 8-K filed on August 12, 2021 (File No. 011-09318)

 10.1
 Amended and Restated Credit Agreement, dated as of April 30, 2025, between Registrant, as borrower, the financial institutions from time to time party thereto, as lenders, and Bank of America, N.A., as administrative agent, incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the period ended March 31, 2025 (File No. 001-09318)

 10.2
 Non-Employee Director Compensation as of October 21, 2024, incorporated by reference to Exhibit 10.2 to our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 (File No. 001-09318)*

 10.3
 Representative Form of Amended and Restated Indemnification Agreement with directors of Registrant, incorporated by reference to Exhibit 10.5 to our Quarterly Report on Form 10-Q for the period ended March 31, 2006 (File No. 001-09318)*

 10.4
 2006 Directors Deferred Compensation Plan (as amended and restated effective November 5, 2020), incorporated by reference to Exhibit 10.4 to our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 (File No. 001-09318)*

 10.5
 1998 Employee Stock Investment Plan (as amended and restated effective June 21, 2022), incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the period ended June 30, 2022 (File No. 001-09318)*

 10.6
 2002 Universal Stock Incentive Plan (as amended and restated effective February 6, 2024), incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on February 8, 2024 (File No. 001-09318)*

 10.7
 Amended and Restated Annual Incentive Compensation Plan (as amended and restated effective December 10, 2019), incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the period ended December 31, 2019 (File No. 001-09318)*

 10.8
 Amended and Restated 2017 Equity Incentive Plan, incorporated by reference to Exhibit 99.1 to our Registration Statement on Form S-8 filed on October 6, 2020 (File No. 333-249336)*

 10.9
 2023 Restricted Fund Unit Plan (as amended and restated effective September 10, 2025) (filed herewith)*

 10.10
 Amended and Restated Deferred Compensation Fund Plan (as amended and restated effective August 15, 2023), incorporated by reference to Exhibit 10.10 to our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (File No. 001-09318)*

 10.11
 Legg Mason, Inc. Amended and Restated Deferred Compensation Fund Plan (as amended and restated effective October 6, 2023), incorporated by reference to Exhibit 10.11 to our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (File No. 001-09318)*

 10.12
 ClearBridge Investments, LLC Deferred Incentive Plan (as amended and restated effective February 10, 2023), incorporated by reference to Exhibit 10.12 to our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (File No. 001-09318)*

 10.13
 Representative Form of Restrictive Covenants to Award Agreement for certain equity awards to executive officers of Registrant (filed herewith)*

 10.14
 Representative Forms of Notice of Restricted Stock Unit Award and Restricted Stock Unit Award Agreement (RSU) under our 2002 Universal Stock Incentive Plan for certain time-based awards to executive officers of Registrant (filed herewith)*

 10.15
 Representative Forms of Notice of Restricted Stock Unit Award and Restricted Stock Unit Award Agreement (RSU) under our 2002 Universal Stock Incentive Plan for certain performance-based awards to executive officers of Registrant (filed herewith)*

 Exhibit No.

 Description

 10.16
 Representative Forms of Notice of Restricted Stock Unit Award and Restricted Stock Unit Award Agreement (RSU) under our 2002 Universal Stock Incentive Plan for certain time-based awards to executive officers of Registrant, incorporated by reference to Exhibit 10.13 to our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (File No. 001-09318)*

 10.17
 Representative Forms of Notice of Restricted Stock Unit Award and Restricted Stock Unit Award Agreement (RSU) under our 2002 Universal Stock Incentive Plan for certain performance-based awards to executive officers of Registrant, incorporated by reference to Exhibit 10.14 to our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (File No. 001-09318)*

 10.18
 Code of Ethics and Business Conduct dated as of October 21, 2024, incorporated by reference to Exhibit 10.18 to our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 (File No. 001-09318)

 10.19
 Trading Blackout Policy dated as of December 11, 2012, incorporated by reference to Exhibit 10.19 to our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 (File No. 001-09318)

 List of Subsidiaries (filed herewith)

 Consent of Independent Registered Public Accounting Firm (filed herewith)

 31.1
 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

 31.2
 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

 32.1
 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

 32.2
 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

 97.1
 Executive Compensation Clawback Policy of Registrant, incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on October 24, 2023 (File No. 001-09318)*

 *
 Management contract or compensatory plan or arrangement

 SIGNATURES
 Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 Date:
 By:
 /s/ Matthew Nicholls

 Matthew Nicholls, Co-President, Chief Financial Officer and Chief Operating Officer (Principal Financial Officer)

 Date:
 By:
 /s/ Lindsey H. Oshita

 Lindsey H. Oshita, Chief Accounting Officer (Principal Accounting Officer)

 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

 Date:
 By:
 /s/ Jennifer M. Johnson

 Jennifer M. Johnson, Chief Executive Officer and Director
 (Principal Executive Officer)

 Date:
 By:
 /s/ Matthew Nicholls

 Matthew Nicholls, Co-President, Chief Financial Officer and Chief Operating Officer (Principal Financial Officer)

 Date:
 By:

 /s/ Lindsey H. Oshita

 Lindsey H. Oshita, Chief Accounting Officer (Principal Accounting Officer)

 Date:
 By:
 /s/ Mariann Byerwalter

 Mariann Byerwalter, Director

 Date:
 By:
 /s/ Alexander S. Friedman

 Alexander S. Friedman, Director

 Date:
 By:
 /s/ Gregory E. Johnson

 Gregory E. Johnson, Executive Chairman, Chairman of the Board
and Director

 Date:
 By:
 /s/ Rupert H. Johnson, Jr.

 Rupert H. Johnson, Jr., Vice Chairman and Director

 Date:
 By:
 /s/ John Y. Kim

 John Y. Kim, Director

 Date:
 By:
 /s/ Karen M. King

 Karen M. King, Director

 Date:
 By:
 /s/ Anthony J. Noto

 Anthony J. Noto, Director

 Date:
 By:
 /s/ John W. Thiel

 John W. Thiel, Director

 Date:
 By:
 /s/ Seth H. Waugh

 Seth H. Waugh, Director

 Date:
 By:
 /s/ Geoffrey Y. Yang

 Geoffrey Y. Yang, Director