Core Viewpoint - Franklin Resources Inc. reported third-quarter fiscal 2025 adjusted earnings of 49 cents per share, exceeding the Zacks Consensus Estimate of 48 cents, but down from 60 cents in the same quarter last year. The results were influenced by improved assets under management (AUM), although lower revenues and higher expenses negatively impacted performance [1][10]. Financial Performance - Net income on a GAAP basis was $92.3 million, reflecting a 46.9% decline year over year, compared to an estimate of $131.2 million [2]. - Total operating revenues decreased by 2.8% year over year to $2.06 billion, although this figure surpassed the Zacks Consensus Estimate of $2 billion [3]. - Investment management fees fell by 2.9% year over year to $1.64 billion, while sales and distribution fees decreased by 1.8% to $351.9 million. Shareholder-servicing fees also declined by 3.1% to $59.9 million, and other revenues dropped by 11.6% to $11.4 million [4]. - Total operating expenses increased slightly year over year to $1.91 billion, driven by higher compensation and benefits costs, technology expenses, and other operational costs. The operating margin shrank to 7.5% from 10.5% in the previous year [5]. Assets Under Management (AUM) - As of June 30, 2025, total AUM was $1.61 trillion, marking a 4.6% sequential increase, despite long-term net outflows of $9.3 billion during the quarter. The average AUM was $1.57 trillion, showing a slight decrease on a sequential basis [6]. Capital Position and Distribution - As of June 30, 2025, the company held cash and cash equivalents of $6.8 billion, with total stockholders' equity at $13.1 billion [7]. - In the reported quarter, Franklin repurchased 7.3 million shares for $157.4 million [8]. Strategic Outlook - The company is focusing on diversifying its business through acquisitions and leveraging its rising AUM and strong distribution platform, which may support revenue growth. However, increasing expenses related to technological upgrades could pressure profitability [11].

PART I Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Franklin Resources, Inc.'s unaudited consolidated financial statements for Q3 2025, showing decreased net income and EPS [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Q3 2025 total operating revenues decreased to $2,064.0 million, with net income falling to $92.3 million and diluted EPS to $0.15 Consolidated Statements of Income Highlights (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $2,064.0 | $2,122.9 | $6,427.0 | $6,266.8 | | **Operating Income** | $154.1 | $222.5 | $518.7 | $558.3 | | **Net Income Attributable to Franklin Resources, Inc.** | $92.3 | $174.0 | $407.3 | $549.5 | | **Diluted Earnings per Share** | $0.15 | $0.32 | $0.70 | $1.03 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased slightly to $32,552.2 million as of June 30, 2025, while total liabilities rose and stockholders' equity decreased Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$32,552.2** | **$32,464.5** | | Cash and cash equivalents | $3,253.9 | $3,309.5 | | Goodwill | $6,211.6 | $6,211.4 | | Intangible assets, net | $4,440.3 | $4,802.1 | | **Total Liabilities** | **$18,117.3** | **$17,899.7** | | Debt | $2,666.7 | $2,780.3 | | **Total Stockholders' Equity** | **$13,054.4** | **$13,243.0** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Nine months ended June 30, 2025, saw net cash from operations increase to $1,086.8 million, with a total decrease in cash of $451.9 million Cash Flow Summary (Nine Months Ended June 30, in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,086.8 | $413.1 | | **Net cash used in investing activities** | $(1,901.3) | $(1,222.7) | | **Net cash provided by financing activities** | $363.9 | $506.4 | | **Decrease in cash and cash equivalents** | $(451.9) | $(290.7) | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, investments, fair value, CIPs, and legal proceedings, with sponsored funds contributing 83% of revenues - Revenues from sponsored funds accounted for **83% of total operating revenues** for the nine months ended June 30, 2025[25](index=25&type=chunk) - The company's maximum exposure to loss from nonconsolidated Variable Interest Entities (VIEs), consisting of investments and receivables, was **$1,623.8 million** as of June 30, 2025[45](index=45&type=chunk) - No significant changes occurred in the India Credit Fund Closure Matters, while SEC and DOJ investigations into Western Asset Management (WAM) are ongoing, and new lawsuits were filed regarding the Franklin Templeton 401(k) Retirement Plan and WAM trade allocations[46](index=46&type=chunk)[47](index=47&type=chunk)[49](index=49&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2025 financial performance, noting decreased AUM to $1,611.8 billion, lower revenues, and a contracted operating margin of 7.5% [Assets Under Management (AUM)](index=24&type=section&id=Assets%20Under%20Management%20%28AUM%29) Total AUM decreased 2% to $1,611.8 billion at June 30, 2025, driven by $80.1 billion in net outflows, primarily from Fixed Income AUM by Asset Class (in billions) | Asset Class | June 30, 2025 | June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Equity | $656.6 | $595.0 | 10% | | Fixed Income | $441.7 | $564.5 | (22%) | | Alternative | $258.4 | $254.5 | 2% | | Multi-Asset | $183.2 | $168.1 | 9% | | Cash Management | $71.9 | $64.5 | 11% | | **Total** | **$1,611.8** | **$1,646.6** | **(2%)** | Change in AUM (Nine Months Ended June 30, 2025, in billions) | Component | Amount | | :--- | :--- | | Beginning AUM (Oct 1, 2024) | $1,678.6 | | Long-term net flows | $(85.5) | | Cash management net flows | $5.4 | | **Total net flows** | **$(80.1)** | | Net market change, distributions and other | $13.5 | | **Ending AUM (June 30, 2025)** | **$1,611.8** | - For the nine months ended June 30, 2025, long-term net outflows totaled **$85.5 billion**, including **$118.6 billion** of long-term net outflows at Western Asset Management (WAM)[79](index=79&type=chunk) [Investment Performance](index=28&type=section&id=Investment%20Performance) As of June 30, 2025, Fixed Income performance was strong, with 65% of AUM in top two quartiles (1-year), while Equity performance was weaker at 41% Investment Performance as of June 30, 2025 (% of AUM) | Category | Metric | 1-Year | 3-Year | 5-Year | 10-Year | | :--- | :--- | :--- | :--- | :--- | :--- | | **Equity** | % AUM in Top 2 Quartiles | 41% | 63% | 51% | 59% | | | % AUM Exceeding Benchmark | 31% | 45% | 35% | 44% | | **Fixed Income** | % AUM in Top 2 Quartiles | 65% | 72% | 68% | 61% | | | % AUM Exceeding Benchmark | 65% | 74% | 82% | 86% | [Operating Revenues and Expenses](index=28&type=section&id=Operating%20Revenues%20and%20Expenses) Q3 2025 operating revenues decreased 3% to $2.1 billion due to lower AUM, while expenses remained flat, impacted by increased amortization and decreased occupancy costs - Investment management fees decreased in Q3 2025 due to a **4% drop in average AUM**, primarily in fixed income, with an effective investment management fee rate of **40.5 basis points** for the quarter[90](index=90&type=chunk)[91](index=91&type=chunk) - Performance fees were **$60.6 million** for Q3 2025, up from **$56.6 million** in the prior year quarter[92](index=92&type=chunk) - Amortization of intangible assets increased significantly for both the three and nine-month periods, primarily due to a reduction in the remaining useful life of definite-lived intangible assets related to WAM[111](index=111&type=chunk) - An impairment charge of **$24.4 million** was recognized during the nine months ended June 30, 2025, related to certain indefinite-lived intangible assets for acquired mutual fund investment management contracts[112](index=112&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $5.6 billion in liquid assets, repurchased 8.1 million shares for $173.2 million, and entered a new $1.1 billion credit agreement Liquid Assets and Debt (in millions) | Category | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $3,213.4 | $3,261.1 | | Receivables | $1,215.3 | $1,261.6 | | Investments | $1,216.1 | $1,141.7 | | **Total Liquid Assets** | **$5,644.8** | **$5,664.4** | | **Debt** | **$2,666.7** | **$2,780.3** | - During the nine months ended June 30, 2025, the company repurchased **8.1 million shares** of common stock at a cost of **$173.2 million**, with **21.9 million shares** remaining available for repurchase[147](index=147&type=chunk) - On April 30, 2025, the company entered into a new five-year, **$1.1 billion** Amended and Restated Revolving Credit Agreement[142](index=142&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in market risk disclosures from the Annual Report on Form 10-K for the fiscal year ended September 30, 2024 - No material changes occurred from the market risk disclosures in the Form 10-K for the fiscal year ended September 30, 2024[159](index=159&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The Company's principal executive and financial officers concluded that disclosure controls and procedures as of June 30, 2025, were effective[160](index=160&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[161](index=161&type=chunk) PART II Other Information [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings include ongoing SEC/DOJ investigations into WAM, a related class-action lawsuit, and a new lawsuit regarding the Franklin Templeton 401(k) Retirement Plan - The company provides an update on the Western Asset Management (WAM) investigations, noting the CFTC has closed its investigation, but SEC and DOJ investigations remain ongoing, with a related class-action lawsuit filed on July 3, 2025[47](index=47&type=chunk)[48](index=48&type=chunk) - A new lawsuit was filed on July 22, 2025, by former employees concerning the Franklin Templeton 401(k) Retirement Plan, alleging breaches of fiduciary duties related to the inclusion of proprietary funds[49](index=49&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred from the Risk Factors previously disclosed in the Annual Report on Form 10-K for fiscal year 2024 - No material changes occurred from the Risk Factors disclosed in the last Annual Report on Form 10-K[164](index=164&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2025, the company repurchased 7,295,376 shares of common stock, with 21.9 million shares remaining authorized for repurchase Common Stock Repurchases (Q3 2025) | Month | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 100,572 | $19.22 | | May 2025 | 7,190,234 | $21.61 | | June 2025 | 4,570 | $21.15 | | **Total** | **7,295,376** | **N/A** | - In December 2023, the Board of Directors authorized the repurchase of up to an additional **27.2 million shares**, for a total of up to **40.0 million shares** available under the program[166](index=166&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q3 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the quarter ended June 30, 2025[167](index=167&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and iXBRL formatted financial data

Financial Data and Key Metrics Changes - The company's assets under management (AUM) ended the quarter at $1,610 billion, an increase from the prior quarter due to positive market impacts and strengthening flows, partially offset by long-term outflows at Western Asset Management [18][19] - Adjusted operating income was $378 million, flat from the prior quarter, driven by lower compensation expenses, offset by the impact of Western outflows and lower average AUM [34] Business Line Data and Key Metrics Changes - Long-term net outflows totaled $9.3 billion, representing a marked improvement from the prior quarter's outflows of $26.2 billion. Excluding Western Asset Management, long-term net inflows were $7.8 billion this quarter [19][20] - Multi-asset and alternatives generated another quarter of positive net flows, resulting in a combined $4.3 billion for the quarter, with multi-asset flows being positive for 16 consecutive quarters [20] - Fixed income net outflows improved to $13 billion this quarter, while excluding Western, fixed income net inflows were $3.5 billion, driven by Franklin Templeton fixed income and Brandywine Global [21][22] Market Data and Key Metrics Changes - The S&P 500 posted a recovery, rising 25% from its April lows and ending the quarter up nearly 11%, with large-cap growth stocks leading the recovery [9][10] - International markets outperformed the US, with the MSCI EAFE up 19% through June, aided by a weaker US dollar [10] Company Strategy and Development Direction - The company aims to manage local businesses combined with global scale, focusing on local investing and client needs, with approximately 30% of AUM in countries outside the US [8] - The company is committed to growing its global alternatives platform, with a recent agreement to acquire a majority interest in Apira Asset Management, expanding direct lending capabilities across Europe's lower middle market [24][25] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously constructive on the outlook for the US equity market, citing solid fundamentals but caution due to geopolitical and policy uncertainties [11][12] - The company continues to expect at most one more rate cut by the Fed this year, with additional monetary easing possible should growth begin to deteriorate [14] Other Important Information - The company has seen cash management net inflows for four out of the last five quarters, with $2.7 billion in each of the last two quarters, increasing cash management AUM to $72 billion [23] - The ETF platform achieved its fifteenth consecutive quarter of positive net flows, attracting $4.3 billion and reaching a new high of $44.1 billion in AUM, reflecting a 19% growth from the prior quarter [28] Q&A Session Summary Question: Integration and Growth of Private Credit - Management emphasized the importance of integrating acquisitions like Apira into the broader private credit platform, aiming for a unified private credit group rather than standalone entities [37][40] Question: Tokenization's Economic Value Proposition - Management believes tokenization will fundamentally change the financial system, enhancing capabilities and reducing costs through blockchain technology [44][48] Question: Regulatory Conversations and Capital Deployment - Management reiterated the strength of their fixed income franchise and noted ongoing cooperation with regulators regarding Western Asset Management, while focusing on organic growth and share repurchases [51][56] Question: Outlook for Private Markets Growth - Management expects alternative fundraising to be in the range of $13 to $20 billion, with a focus on expanding the wealth channel and increasing distributor relationships [62][66]

Core Insights - Franklin Resources reported $2.06 billion in revenue for the quarter ended June 2025, a year-over-year decline of 2.8%, with EPS of $0.49 compared to $0.60 a year ago, exceeding the Zacks Consensus Estimate of $2 billion by 3.4% [1] - The company delivered an EPS surprise of 2.08%, with the consensus EPS estimate being $0.48 [1] Financial Performance - Total Net Flows were reported at $-6.60 billion, better than the three-analyst average estimate of $-12.88 billion [4] - Assets Under Management (AUM) totaled $1,611.80 billion, exceeding the three-analyst average estimate of $1,588.40 billion [4] - AUM in Fixed Income was $441.70 billion, below the estimate of $452.27 billion; Multi-Asset AUM was $183.20 billion, above the estimate of $175.25 billion; Equity AUM was $656.60 billion, above the estimate of $639.18 billion; Alternative AUM was $258.40 billion, above the estimate of $250.18 billion; Cash Management AUM was $71.90 billion, slightly above the estimate of $71.51 billion [4] Revenue Breakdown - Operating Revenues from Investment Management Fees were $1.64 billion, exceeding the average estimate of $1.56 billion, representing a year-over-year change of -2.9% [4] - Operating Revenues from Shareholder Servicing Fees were $59.9 million, compared to the estimated $58.57 million, reflecting a -3.1% change year-over-year [4] - Operating Revenues from Sales and Distribution Fees were $351.9 million, exceeding the three-analyst average estimate of $344.14 million, with a year-over-year change of -1.8% [4] Stock Performance - Shares of Franklin Resources returned -3.5% over the past month, while the Zacks S&P 500 composite increased by 2.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Assets under management (AUM) increased to $1,610 billion, driven by positive market impacts and strengthening flows, partially offset by long-term outflows at Western Asset Management [18] - Long-term net outflows totaled $9.3 billion, a significant improvement from the previous quarter's outflows of $26.2 billion [19] - Adjusted operating income remained flat at $378 million from the prior quarter, influenced by lower compensation expenses and the impact of Western outflows [33] Business Line Data and Key Metrics Changes - Multi-asset and alternatives generated positive net flows of $4.3 billion for the quarter, with multi-asset flows positive for 16 consecutive quarters [20] - Fixed income net outflows improved to $13 billion, with positive net inflows of $3.5 billion excluding Western [22] - Cash management AUM grew to $72 billion, with net inflows of $2.7 billion in each of the last two quarters [23] Market Data and Key Metrics Changes - Global equity markets rebounded sharply, with the S&P 500 rising 25% from its April lows and ending the quarter up nearly 11% [7] - International markets outperformed the US, with the MSCI EAFE up 19% through June [9] - The US dollar experienced its largest quarterly decline since 2022, contributing to the performance of non-US markets [12] Company Strategy and Development Direction - The company aims to manage local businesses with global scale, focusing on local investing and client needs, with approximately 30% of AUM in countries outside the US [6] - The acquisition of Appira Asset Management is intended to expand direct lending capabilities across Europe's lower middle market, reflecting a commitment to growing the global alternatives platform [24] - The company continues to emphasize innovation and the integration of new technologies, such as blockchain, to enhance service delivery and reduce costs [46] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously constructive on the US equity market outlook, citing solid fundamentals but caution due to geopolitical and policy uncertainties [10] - The company expects to see continued positive net flows and client engagement, particularly in fixed income and alternatives [19][20] - Management highlighted the importance of diversification and active management in mitigating risks and maximizing returns in a volatile market environment [17] Other Important Information - The company has seen a significant increase in its institutional pipeline, with a record $24.4 billion in won but unfunded mandates [19] - The ETF platform achieved its fifteenth consecutive quarter of positive net flows, reaching a new high of $44.1 billion in AUM, reflecting a 19% growth from the prior quarter [28] - The company is focused on expanding its wealth management channel, with expectations that it could represent 20% to 30% of AUM over time [72] Q&A Session Summary Question: Integration and growth of private credit platform with Appira - Management emphasized the importance of integrating Appira into the broader private credit platform, aiming for a unified private credit group rather than standalone entities [40] Question: Economic value proposition of tokenization - Management believes tokenization will fundamentally change the financial system, enhancing capabilities and reducing costs for clients [46] Question: Regulatory conversations and capital deployment - Management reiterated the strength of the fixed income franchise and noted ongoing cooperation with regulators regarding Western Asset Management [56] Question: Outlook for private markets growth - Management expects alternative fundraising to be in the range of $13 to $20 billion, with a focus on expanding the wealth channel [66] Question: Expense guidance for fiscal year 2026 - Management indicated expectations for $200 million in cost savings entering fiscal 2026, with expenses potentially flat to slightly higher [82]

Core Viewpoint - Franklin Resources (BEN) reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, but down from $0.6 per share a year ago, indicating a mixed performance in earnings [1][2] Financial Performance - The company posted revenues of $2.06 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.40%, although this is a decrease from year-ago revenues of $2.12 billion [2] - Over the last four quarters, Franklin Resources has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Franklin Resources shares have increased approximately 18.3% since the beginning of the year, outperforming the S&P 500's gain of 7.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.54 on revenues of $2.06 billion, and for the current fiscal year, it is $2.08 on revenues of $8.42 billion [7] - The estimate revisions trend for Franklin Resources was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Financial - Investment Management industry, to which Franklin Resources belongs, is currently ranked in the top 19% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Franklin Resources, Inc. Third Quarter 2025 Results August 1, 2025 | Investor Presentation Jenny Johnson President Chief Executive Officer Matthew Nicholls Executive Vice President Chief Financial Officer Chief Operating Officer Adam Spector Executive Vice President Head of Global Distribution Forward-looking statements and non-GAAP financial information This commentary contains forward-looking statements that involve a number of known and unknown risks, uncertainties and other important factors. This comme ...

EXHIBIT 99.1 Contact: Franklin Resources, Inc. Investor Relations: Selene Oh (650) 312-4091, selene.oh@franklintempleton.com Media Relations: Jeaneen Terrio (212) 632-4005, jeaneen.terrio@franklintempleton.com investors.franklinresources.com FOR IMMEDIATE RELEASE Franklin Resources, Inc. Announces Third Quarter Results San Mateo, CA, August 1, 2025 – Franklin Resources, Inc. (the "Company") [NYSE: BEN] today announced net income of $92.3 million or $0.15 per diluted share for the quarter ended June 30, 2025 ...

Key Takeaways Franklin Resources Inc. (BEN) is scheduled to report third-quarter fiscal 2025 results (ended June 30) on August 1, before market open. BEN's quarterly earnings and revenues are anticipated to have declined from the year-ago reported levels. In the last reported quarter, Franklin's earnings met the Zacks Consensus Estimate. Results were affected by lower revenues and assets under management (AUM). Yet, lower expenses supported the results to some extent. BEN's earnings beat the consensus estim ...

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - The industry and market are increasingly focusing on multi - asset ETFs as an innovative product offering one - stop asset allocation solutions. The report explores the development of US multi - asset ETFs to provide insights for domestic market innovation [2][11]. - US multi - asset ETFs have shown significant growth in recent years, with distinct characteristics such as strong head - effects in scale, rapid development of actively managed products, and extensive application of FOF - type products [2][20][31]. - The development of US multi - asset ETFs offers important lessons for the domestic market, including deepening multi - asset index development, diversifying allocation strategies, and broadening underlying asset investment tools [5]. 3. Summary by Directory 3.1 Two Action Plans Mentioned, Multi - asset ETFs Are Approaching - The "Public Offering Plan" emphasizes increasing the creation of asset - allocation products to meet the needs of investors with different risk preferences and promote the coordinated development of equity and fixed - income investments [8]. - The "Index Plan" proposes researching and launching innovative index products such as multi - asset ETFs and expanding the underlying asset categories of ETFs. Recent releases of multi - asset indices indicate growing market attention [10][11]. 3.2 Analysis of the Development History and Current Situation of US Multi - asset ETFs - In 2005, BlackRock issued the world's first multi - asset ETF in Canada. In 2006, Invesco launched the first US multi - asset ETF. After the 2008 financial crisis, multi - asset ETFs evolved rapidly [13][14]. - As of March 31, 2025, there are 181 multi - asset ETFs in the US market, with a total scale of $36 billion, ranking first globally. However, their scale accounts for only 0.35% of all US ETFs, indicating significant growth potential [18]. - The top three fund managers in terms of management scale are BlackRock, Pacer Advisors, and First Trust Portfolios, with a combined scale ratio of 45.35%. The top ten multi - asset ETFs in terms of fund scale account for 51.26% of the total scale [22][25]. - Actively managed multi - asset ETFs have developed rapidly. As of March 31, 2025, 146 out of 181 multi - asset ETFs are actively managed, accounting for 80.66%. Their issuance has increased explosively since 2021 [31]. - FOF - type products are widely used in US multi - asset ETFs. As of March 31, 2025, 73 out of 181 multi - asset ETFs are marked as FOF - type, accounting for nearly 40%, with a fund scale of $13.041 billion, about 36% of the total [34]. - The expense ratios of US multi - asset ETFs vary significantly. The average expense ratio of all 181 multi - asset ETFs is 0.80%, with actively managed and passively managed products having average expense ratios of 0.83% and 0.69% respectively. The expense ratio has generally remained low since 2016 [5][40]. 3.3 Exploration of the Strategy Classification of US Multi - asset ETFs - **Core Allocation Type**: This is the most common strategy type, further divided into target - risk, macro - strategy, and subjective - allocation subtypes. Target - risk type aims to meet pre - designed risk metrics, with 28 products and a scale of $8.176 billion. Macro - strategy type adjusts asset allocation based on macro - economic analysis, with 12 products and a scale of $0.937 billion. Subjective - allocation type gives investment managers high freedom, with 57 products and a scale of $10.402 billion [44][47][51]. - **Trend - Following Type**: These ETFs use momentum factors or trend - following models for asset allocation. As of March 31, 2025, there are 26 products with a scale of $7.193 billion, accounting for about 20% of the total [54][55]. - **Target - Dividend Type**: These ETFs focus on interest (dividend) income, with 22 products and a scale of $6.384 billion. The average historical dividend rate of 17 products issued before 2024 is 7.20%, much higher than other types [58][63]. - **Option - Strategy Type**: These ETFs add option - based derivatives to underlying assets to change the risk - return characteristics. As of March 31, 2025, there are 36 products with a scale of $2.907 billion, accounting for 8.08% of the total [63][64]. 3.4 Suggestions and Insights - **Investor Suggestions**: Different types of investors can choose corresponding multi - asset ETFs. For example, risk - sensitive investors can choose target - risk type; policy - sensitive investors can choose macro - strategy type; investors seeking stable cash flow can choose target - dividend type; those preferring quantitative strategies can choose trend - following type; and investors interested in alternative strategies can choose option - strategy type [68][69][70]. - **Insights for the Domestic Market**: The domestic market should prioritize using existing multi - asset indices as tracking targets, deepen the development of multi - asset indices, focus on stable strategies and diversify allocation strategies, and broaden underlying asset investment tools to promote the development of multi - asset ETFs [72][73][75].