Franklin Templeton reaches $1.8T in assets as Western Asset crisis recedes

Franklin Templeton’s assets under management have climbed to approximately $1.79 trillion. The recovery story is largely about everything at Franklin Templeton that isn’t Western Asset Management. Excluding that troubled subsidiary, the firm pulled in $34.6 billion in long-term net inflows in a recent quarter.

Western Asset Management, the fixed-income subsidiary that became Franklin Templeton’s most expensive headache, saw its AUM settle at roughly $216 billion as of June 30, 2026. That number represents the aftermath of more than $140 billion in net outflows during fiscal 2025, triggered by an SEC investigation into former co-CIO Ken Leech.

Outflows from Western slowed to just $1.1 billion in the quarter ended June 30, 2026. The SEC reached a $100 million settlement with Western Asset in June 2026, and the Department of Justice subsequently declined to pursue further action.

The firm has recorded several consecutive quarters of positive net flows across its public and private market strategies, a streak that CEO Jenny Johnson highlighted at the company’s February 2026 annual meeting. AUM climbed from $1.68 trillion earlier in fiscal 2026 to $1.79 trillion by midyear.

Franklin Templeton’s ETF AUM now stands at approximately $50 billion, reflecting a 74% compound annual growth rate since 2023.

Western Asset still represents a meaningful share of overall AUM at $216 billion. If outflows from Western reaccelerate for any reason, the firm would need its other divisions to compensate, a dynamic it has proven it can manage but one that still introduces volatility into the flow picture.

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