Franklin Resources Expands Abroad and Delivers Strong Annual Growth

Franklin Resources, Inc. has introduced its first outbound investment product through India's Gujarat International Finance Tec-City, known as GIFT City. The newly unveiled Franklin US Equity IFSC Fund offers Indian investors an actively managed avenue into American equities. It functions as a feeder fund channeling capital into the FTGF Putnam US Research Fund, a master portfolio managed by Putnam Investments that oversaw more than $10.6 billion as of September 30, 2026. The initial subscription window runs from November 11 through December 11, 2026, requiring an entry threshold of $5,000.

The launch extends the company's international reach after establishing its GIFT City entity in 2024. Kiran Voleti, principal officer of the group's IFSC unit, noted that the vehicle provides core international equity exposure. Avinash Satwalekar, president of Franklin Templeton India, stated that the strategy targets value through individual company analysis instead of sector allocations. The retail product applies an exit fee of 2% on redemptions processed within 24 months of allotment.

This global expansion follows strong full-year operating performance. For the fiscal year ending September 30, 2026, Franklin Templeton generated preliminary net income of $1.075 billion, more than doubling the $524.9 million recorded the previous year. Operating revenue rose 7% to $9.42 billion, while operating income surged 95% to $1.18 billion. Diluted earnings climbed to $1.97 per share from $0.91.

Total assets under management reached an all-time high of $1.795 trillion at the close of September 2026, representing an 8% increase from a year prior. Net long-term inflows reached $84.1 billion across the fiscal year, rebounding from redemptions in the earlier year. The firm's exchange-traded fund assets increased 73% to $84.6 billion, while international assets neared $525 billion.

Recent reports from Yahoo Finance observe that the stock recently closed at $36.29, up roughly 77.7% over a three-year span and posting a 66.89% total return over the trailing twelve months. A Simply Wall St consensus narrative identified a fair value estimate of $36.92 per share, while an excess returns valuation model pegged underlying worth well above current quotes. However, analysts pointed out that the current price-to-earnings multiple of 17.3x sits above a fair multiple of 13.3x, presenting potential downside if margin pressures emerge.