Franklin Resources, Inc. (NYSE:BEN) Q2 2024 Earnings Call Transcript

Bill, I’ll also answer because I think you had the question on a little bit more of a breakdown of our third quarter. I’ve already gone into some detail on EFR. In terms of comp and benefits for the third quarter, we expect that to be around $820 million. That assumes performance fees of $40 million. That’s lower than the previous quarters, driven by lower performance fees out of our real estate business for the reason that Jenny mentioned, it’s important to note that the relative performance of Clarion is very strong, but the absolute valuation of real estate has come down, that’s impacted the extent of performance fees. That’s why we’re guiding that down to $40 million from $50 million.

IS&T, we expect it to remain at $150 million, occupancy, $80 million. As you all know, that’s going to come down later on in fiscal 2025 based on the double rent going away. But for next quarter, we expect that to remain at $80 million. And then G&A, we expect to be probably around $175 million. It could be as high as $180 million because we’re planning on spending more in advertising, but it won’t go — it shouldn’t go a bit beyond that. So let’s say, $175 million to $180 million in G&A.

And I already provided the annual guidance earlier on based on Dan Fannon’s question.

Operator: This concludes today’s Q&A session. I would now like to hand the call back over to Jenny Johnson, Franklin’s President and CEO, for final comments.

Jennifer Johnson: Great. Well, everybody, thank you for participating in today’s call. And once again, we would like to thank our employees for their hard work and dedication delivering this quarter. And we look forward to speaking to all of you again next quarter, and everybody stay healthy.

Operator: Thank you. Ladies and gentlemen, this does indeed conclude today’s conference call. You may now disconnect your lines.