Franklin's (BEN) July AUM Increases Slightly on Market Returns

BEN IVZ APO AMG

Franklin Resources, Inc. (BEN - Free Report) has reported preliminary assets under management (AUM) balance of $1,557.3 billion for July 2021. This reflects a marginal increase of 0.3% from $1,552.1 billion recorded as of Jun 30, 2021.

The improvement in the AUM balance was largely driven by market appreciation and the buyout of Diamond Hill’s high yield-focused, U.S. corporate credit mutual funds of $3.4 billion. Yet, long-term net outflows were worrisome. 

Month-end equity assets of $536.5 billion declined marginally from the previous month. Total fixed income assets were $661.4 billion, up 0.5% from June 2021. Franklin recorded $153 billion in multi-asset class, up 0.4% from the prior month.

Alternative assets aggregated $143.1 billion, up 1.6% from the prior month’s $140.8 billion. Cash-management funds totaled $62.7 billion, down around 1% sequentially.

As of Jun 30, 2021, the company reported a total AUM of $1.55 trillion, up 149% from $622.8 billion as of Jun 30, 2020. Net new outflows of $6.6 billion were recorded in the April-June period.

Franklin seems well-poised for growth on the back of a robust foothold in the global market and acquisition moves. Going forward, growth in investment-management fees and strategic moves will likely support a rise in AUM. However, a stringent regulatory backdrop remains a near-term concern for the company.

Shares of Franklin have inched up 0.4% in the past three months, underperforming the13.6% rally of the industry.

 

 

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recently, Invesco (IVZ - Free Report) also announced AUM for July 2021. The company’s preliminary month-end AUM of $1,528.4 billion represents an increase of 0.2% from the prior month.It witnessed net long-term inflows of $1.7 billion and non-management fee earning net inflows of $2.9 billion. 

Stocks to Consider

Affiliated Managers Group, Inc. (AMG - Free Report) carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for its 2021 earnings has been revised 2.3% upward over the past 30 days.

Apollo Global Management, Inc. (APO - Free Report) carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for its 2021 earnings has been 7.9% upward over the past seven days.

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