BEN · 10-K · 2026A · Full report

Revenue Performance and Mix

FRANKLIN TEMPLETON INC · 2026-11-09 · Importance 49 · Surprise 32

Fiscal 2026 operating revenues rose 7.3% to $9,415.3 million from $8,770.7 million, an increase of $644.6 million. Investment management fees increased $497.1 million to $7,478.9 million, primarily from higher average equity, multi-asset and alternative AUM and the Apera acquisition, partly offset by lower performance fees and WAM outflows. Sales and distribution fees increased $119.0 million to $1,593.7 million, while shareholder servicing fees rose $24.9 million to $289.4 million. Performance fees declined to $414.1 million from $474.0 million; the effective investment management fee rate excluding performance fees was 40.7 basis points versus 40.5 basis points.

Key facts

Investment management fees increased $497.1 million in fiscal year 2026, primarily due to increased average equity, multi-asset and alternative AUM and Apera's acquisition, partly offset by decreased performance fees and WAM outflows. source
Performance fees were $414.1 million in fiscal year 2026 and $474.0 million in fiscal year 2025; the decrease primarily reflected lower fees from alternative managers, partly offset by higher fees from equity managers. source
Asset-based distribution fees increased $99.3 million in fiscal year 2026, primarily due to a 5% increase in related average AUM and a higher mix of equity funds, non-U.S. multi-asset funds and U.S. alternative funds. source
The effective investment management fee rate excluding performance fees was 40.7 basis points in fiscal year 2026 and 40.5 basis points in fiscal year 2025. source
Sales-based fees increased $19.7 million in fiscal year 2026, including a $10.3 million increase in contingent sales charges driven by increased redemptions and a 13% increase in commissionable sales. source
Shareholder servicing fees increased $24.9 million in fiscal year 2026, primarily due to higher related AUM and increased revenue from fees earned on a contractual basis. source