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Franklin's (BEN) February AUM Down 2.4% on Weak Markets
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Franklin Resources, Inc. (BEN - Free Report) reported a preliminary asset under management (AUM) balance of $1,416.5 billion for February 2023. This reflects a 2.4% decrease from $1,451.9 billion recorded as of Jan 31.
The decline in AUM balance was primarily due to the impact of negative markets which was partially offset by long-term net inflows. These inflows included $7.5 billion institutional mandate which was invested across fixed income strategies.
Month-end total fixed-income assets were $502.4 billion, down 1.9% from the prior month’s level. Equity assets of $431.9 billion decreased 3.1% from January 2023.
Alternative assets aggregated $256.3 billion, down marginally from the prior month. BEN recorded $144.2 billion in multi-asset class, decreasing 2% from the prior month’s level. Also, cash-management funds totaled $81.7 billion, declining 8.4% sequentially.
Despite a diversified character, the company’s AUM is exposed to market fluctuations, foreign-exchange translations, regulatory changes or a sudden slowdown in overall business activities, which might act as near-term headwinds. Hence, any decline in investment management fees due to market fluctuations remains a key concern for BEN.
Nonetheless, Franklin seems well-poised for growth on the back of a robust foothold in the global market and revenue-diversification efforts. Also, it is growing through strategic acquisitions. These are supporting the company in improving and expanding its alternative investments and multi-asset solution platforms.
Shares of Franklin have gained 2.9% in the past three months against a loss of 1.5% of the industry.
Among other asset managers, Invesco (IVZ - Free Report) and T. Rowe Price (TROW - Free Report) are expected to release preliminary AUM results for February in the coming days.
At present, both Invesco and T. Rowe Price carry a Zacks Rank #3.
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Franklin's (BEN) February AUM Down 2.4% on Weak Markets
Franklin Resources, Inc. (BEN - Free Report) reported a preliminary asset under management (AUM) balance of $1,416.5 billion for February 2023. This reflects a 2.4% decrease from $1,451.9 billion recorded as of Jan 31.
The decline in AUM balance was primarily due to the impact of negative markets which was partially offset by long-term net inflows. These inflows included $7.5 billion institutional mandate which was invested across fixed income strategies.
Month-end total fixed-income assets were $502.4 billion, down 1.9% from the prior month’s level. Equity assets of $431.9 billion decreased 3.1% from January 2023.
Alternative assets aggregated $256.3 billion, down marginally from the prior month. BEN recorded $144.2 billion in multi-asset class, decreasing 2% from the prior month’s level. Also, cash-management funds totaled $81.7 billion, declining 8.4% sequentially.
Despite a diversified character, the company’s AUM is exposed to market fluctuations, foreign-exchange translations, regulatory changes or a sudden slowdown in overall business activities, which might act as near-term headwinds. Hence, any decline in investment management fees due to market fluctuations remains a key concern for BEN.
Nonetheless, Franklin seems well-poised for growth on the back of a robust foothold in the global market and revenue-diversification efforts. Also, it is growing through strategic acquisitions. These are supporting the company in improving and expanding its alternative investments and multi-asset solution platforms.
Shares of Franklin have gained 2.9% in the past three months against a loss of 1.5% of the industry.
Image Source: Zacks Investment Research
Currently, BEN carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Among other asset managers, Invesco (IVZ - Free Report) and T. Rowe Price (TROW - Free Report) are expected to release preliminary AUM results for February in the coming days.
At present, both Invesco and T. Rowe Price carry a Zacks Rank #3.