Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Franklin Resources, Inc. (BEN) Halal?

FAIL

Franklin Resources, Inc. · NYSE: BEN · Financials

The short answer

Franklin Resources fails the Shariah business-activity gate: beyond asset management, it runs material interest-based credit franchises (Western Asset fixed income, Benefit Street Partners/Alcentra alternative credit, Apera direct lending). Debt of $2,401.9M is 14.2% of its ~$16.9 billion market cap, and bundled dividend-plus-interest income is bounded at 1.61% of revenue.

Gate 1 — Business activity: FAIL

Gate 1 — business activity: FAIL. Franklin Resources, Inc. (Franklin Templeton), per its FY2025 Form 10-K (fiscal year ended September 30, 2025), is a global investment management organization headquartered in San Mateo, California (founded 1947), providing mutual funds, ETFs, separately managed accounts, institutional mandates, and alternative investments across equities, fixed income, multi-asset, and alternatives (Legg Mason acquired 2020; Putnam Investments 2024; Jenny Johnson, president and CEO).

Beyond conventional asset management, the franchise includes material interest-based businesses: Western Asset (fixed income), Benefit Street Partners/Alcentra (alternative credit), and Apera (direct lending), unified under a single alternative-credit brand in January 2026. Running interest-based credit businesses is a material part of the franchise, not an ancillary line. The business fails gate 1.

Gate 2 — Debt and cash: PASS

Gate 2 — interest-bearing debt: PASS (14.2%, ceiling 33%). Per Franklin's Q2 FY2026 Form 10-Q consolidated balance sheet, debt was $2,401.9 million (the FY2025 10-K showed $2,362.0 million).

$2,401.9 million against a market capitalization of about $16.9 billion (October 1-2, 2026; NYSE: BEN) is about 14.2%, under the 33% ceiling. Note: consolidated investment products (CIP) carry $9.9-13.3 billion of debt that is explicitly non-recourse to Franklin - excluded here; only the balance-sheet Debt line is used. Aggregator total-debt figures that bundle CIP debt are not used. The debt gate passes, but the result is moot given the business-gate failure.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS as an upper bound (1.61%, ceiling 5%). Franklin does not separately disclose interest income - its filings bundle "Dividend and interest income" at $141.4 million. Even if all of it were interest, $141.4 million against revenue of $8,770.7 million is about 1.61%, under the 5% ceiling.

The gate passes on the numbers as an upper bound, but the business gate already fails: the interest-based credit franchises are the disqualifying line, reported here for the record.

Key figures used

Frequently asked questions

What does Franklin Resources do?

Franklin Resources, Inc. (NYSE: BEN), operating as Franklin Templeton, is a global investment management organization headquartered in San Mateo, California, founded in 1947. Per its FY2025 Form 10-K (fiscal year ended September 30, 2025), it provides mutual funds, ETFs, separately managed accounts, institutional mandates, and alternative investments across equities, fixed income, multi-asset, and alternatives, plus wealth-management services. It strengthened its platform by acquiring Legg Mason (2020) and Putnam Investments (2024), and its alternative-credit franchises include Benefit Street Partners/Alcentra and Apera direct lending. Jenny Johnson is president and CEO.

Is Franklin Resources' business Shariah compliant?

No - Franklin Resources fails the business-activity gate. Beyond conventional asset management, it operates material interest-based franchises: Western Asset (fixed income), Benefit Street Partners/Alcentra (alternative credit), and Apera (direct lending) - unified under a single alternative-credit brand in January 2026. Running interest-based credit businesses is a material part of the franchise, not an ancillary line. Assessed on the filed business description, the business fails this screener's first gate.

How much interest-bearing debt does Franklin Resources have?

Franklin's Q2 FY2026 10-Q reports debt of $2,401.9 million (the FY2025 10-K showed $2,362.0 million). Against a market capitalization of about $16.9 billion (October 1-2, 2026), that is about 14.2% - under the 33% ceiling. Note: consolidated investment products (CIP) carry $9.9-13.3 billion of debt that is explicitly non-recourse to Franklin - it is excluded here; only the balance-sheet Debt line is used. The debt gate passes, but the result is moot given the business-gate failure.

How much interest income does Franklin Resources earn?

Franklin does not separately disclose interest income - its filings bundle 'Dividend and interest income' at $141.4 million. Even if all of it were interest, $141.4 million against revenue of $8,770.7 million is about 1.61% - under the 5% ceiling. This gate passes on the numbers (as an upper bound), but the business gate already fails: the interest-based credit franchises are the disqualifying line, reported here for the record.

What do third-party Shariah screeners say about Franklin Resources?

Zoya flags BEN as not Shariah-compliant (September 2026), consistent with this page's FAIL. I could not verify a Musaffa rating page for BEN or a ShariaPortfolio rating from public sources. Ticker note: BENF (Beneficient) is a different company. Risk note from the FY2025 10-K: Western Asset is subject to disclosed SEC/DOJ investigations. Third-party screeners apply different assumptions and update on different schedules - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).