Franklin Templeton launches tax aware long-short strategies on Canvas

NEW YORK - Franklin Resources, Inc. [NYSE:BEN], operating as Franklin Templeton, announced Tuesday the launch of tax aware long-short strategies on its Canvas platform, starting with a U.S. Large Cap 130/30 structure. The company, which InvestingPro analysis shows is currently undervalued, has demonstrated strong financial health with a current ratio of 4.41, indicating robust liquidity management.

The investment management firm said the new offerings aim to expand the opportunity for generating excess returns while enhancing tax benefits through increased loss harvesting potential compared to long-only direct indexing approaches. The company’s strong market position is reflected in its impressive 25.77% price return over the past six months, according to InvestingPro data.

According to the company’s press release statement, the strategies will include additional leverage options in the future as part of Franklin Templeton’s ongoing expansion of its Canvas investment solution suite.

"Our quantitative legacy combined with our advanced front- and back-end technology gives us a unique edge in delivering tax aware long-short portfolios seamlessly and transparently to clients," said Roger Paradiso, Head of Franklin Templeton Custom Client Solutions.

The firm positions the new strategies as tools for investors looking to diversify concentrated stock positions, prepare for liquidity events, and address portfolios constrained by tax lock.

Franklin Templeton reported approximately $155 billion in separately managed account (SMA) assets under management as of June 30, 2025, with the Canvas platform accounting for $13.8 billion. The company’s total assets under management stood at $1.64 trillion as of August 31, 2025. With a market capitalization of $12.59 billion and a remarkable 45-year track record of consistent dividend payments, Franklin Resources maintains a solid financial foundation. For deeper insights into BEN’s financial health and growth potential, including 8 additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.

The tax aware long-short strategies represent what the company describes as a natural evolution of direct and custom indexing services, with Canvas being one of the few platforms offering both long-short and traditional direct indexing in a single interface.

In other recent news, Franklin Resources reported its third-quarter earnings for 2025, exceeding analysts’ expectations. The company achieved an earnings per share of $0.49, surpassing the forecasted $0.48, and reported revenue of $2.06 billion, which was significantly higher than the anticipated $1.59 billion. This revenue figure represents a notable 29.56% surprise. Additionally, Franklin Resources has formed a strategic partnership with Copenhagen Infrastructure Partners, DigitalBridge, and Actis to enhance its private wealth offerings. This collaboration aims to provide tailored private infrastructure solutions for its clients.

In another development, Franklin Resources announced the appointment of Daniel Gamba as Chief Commercial Officer, effective October 15, 2025. Gamba will oversee global sales, marketing, and product strategy, reporting directly to CEO Jenny Johnson. Alongside Gamba, Terrence Murphy and Matthew Nicholls will become Co-Presidents, working closely with Johnson and the board to execute the firm’s long-term strategic plans. These recent developments highlight Franklin Resources’ efforts to strengthen its leadership team and expand its service offerings.

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