Franklin Resources

Revenue and cash flows are tied to market levels and net flows, which reduces predictability. That said, Franklin’s mix is improving: ex‑Western Asset, long‑term flows have been positive; alternatives bring longer‑duration capital; and retirement channels are stickier.

Offsetting this, Western Asset continues to post outsized outflows amid regulatory overhang, and fixed‑income profits can be cyclical. We view long‑term trend predictability as improving from a low base, but still below high‑quality tollbooth businesses.