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Franklin's (BEN) January AUM Dips 3.6% on Unfavorable Markets
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Franklin Resources, Inc. (BEN - Free Report) reported preliminary assets under management (AUM) balance of $1,521.8 billion for January 2022. This reflects a 3.6% decrease from $1,561.7 billion recorded as of Dec 31, 2021.
This month's decrease in AUM was primarily due to the negative impacts of markets, while long-term net flows were flat.
Total fixed-income assets were $626 billion, down 2.5% from December 2021. Cash-management funds totaled $63.1 billion, down 1.9% sequentially.
Month-end equity assets of $526.3 billion declined 6.6% from the previous month. Franklin recorded $151.5 billion in multi-asset class, down 1.6% from the prior month. Nonetheless, alternative assets aggregated $154.9 billion, up 0.4% from the prior month.
Franklin seems well-poised for growth on the back of a robust foothold in the global market and acquisition moves. In January, Franklin completed its previously announced acquisition of O’Shaughnessy Asset Management, LLC (“OSAM”), a preeminent quantitative asset management firm, thereby reinforcing its position in the separately managed account (SMA) space.
Through the acquisition, the company will leverage OSAM’s factor-based investment management and custom indexing solution capabilities via the latter’s popular flagship Canvas platform. Since the Canvas platform was rolled out in late 2019, it has seen robust growth, with $2 billion AUM of OSAM’s aggregate $6.5 billion AUM as of Nov 30, 2021.
However, any decline in investment management fees on market fluctuations and foreign-exchange translations remain key concerns for the company. A strict regulatory environment globally is another headwind.
Shares of Franklin have gained 14.1% in the past year against the 0.4% decline of the industry.
Invesco (IVZ - Free Report) announced a preliminary AUM for January 2022. IVZ's month-end AUM of $1,550.9 billion represented a decline of 3.7% from the previous month.
Invesco's AUM was affected by unfavorable market returns, which decreased AUM by $61 billion. Because of foreign exchange rate movements, Invesco's AUM declined $2.1 billion.
Other asset managers, including Lazard Ltd (LAZ - Free Report) and T. Rowe Price Group, Inc. (TROW - Free Report) , are likely to come out with January AUM balance soon.
At present, Lazard and T. Rowe carry a Zacks Rank of 4 (Sell). The Zacks Consensus Estimate for Lazard and T. Rowe’s 2022 earnings has been revised 1.2% and 4.8% downward, respectively, over the past month.
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Franklin's (BEN) January AUM Dips 3.6% on Unfavorable Markets
Franklin Resources, Inc. (BEN - Free Report) reported preliminary assets under management (AUM) balance of $1,521.8 billion for January 2022. This reflects a 3.6% decrease from $1,561.7 billion recorded as of Dec 31, 2021.
This month's decrease in AUM was primarily due to the negative impacts of markets, while long-term net flows were flat.
Total fixed-income assets were $626 billion, down 2.5% from December 2021. Cash-management funds totaled $63.1 billion, down 1.9% sequentially.
Month-end equity assets of $526.3 billion declined 6.6% from the previous month. Franklin recorded $151.5 billion in multi-asset class, down 1.6% from the prior month. Nonetheless, alternative assets aggregated $154.9 billion, up 0.4% from the prior month.
Franklin seems well-poised for growth on the back of a robust foothold in the global market and acquisition moves. In January, Franklin completed its previously announced acquisition of O’Shaughnessy Asset Management, LLC (“OSAM”), a preeminent quantitative asset management firm, thereby reinforcing its position in the separately managed account (SMA) space.
Through the acquisition, the company will leverage OSAM’s factor-based investment management and custom indexing solution capabilities via the latter’s popular flagship Canvas platform. Since the Canvas platform was rolled out in late 2019, it has seen robust growth, with $2 billion AUM of OSAM’s aggregate $6.5 billion AUM as of Nov 30, 2021.
However, any decline in investment management fees on market fluctuations and foreign-exchange translations remain key concerns for the company. A strict regulatory environment globally is another headwind.
Shares of Franklin have gained 14.1% in the past year against the 0.4% decline 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.
Competitive Landscape
Invesco (IVZ - Free Report) announced a preliminary AUM for January 2022. IVZ's month-end AUM of $1,550.9 billion represented a decline of 3.7% from the previous month.
Invesco's AUM was affected by unfavorable market returns, which decreased AUM by $61 billion. Because of foreign exchange rate movements, Invesco's AUM declined $2.1 billion.
Other asset managers, including Lazard Ltd (LAZ - Free Report) and T. Rowe Price Group, Inc. (TROW - Free Report) , are likely to come out with January AUM balance soon.
At present, Lazard and T. Rowe carry a Zacks Rank of 4 (Sell). The Zacks Consensus Estimate for Lazard and T. Rowe’s 2022 earnings has been revised 1.2% and 4.8% downward, respectively, over the past month.