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Franklin Resources, Inc. (BEN) - free report >>
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Franklin Resources, Inc. (BEN) - free report >>
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Franklin's (BEN) October AUM Rises 1.6% on Favorable Markets
Franklin Resources, Inc. (BEN - Free Report) reported a preliminary asset under management (AUM) balance of $1,318.4 billion for October 2022. This reflects a 1.6% increase from $1,297.4 billion recorded as of Jun 30, 2022.
The rise in the AUM balance was primarily driven by an upbeat market performance, partially offset by long-term net outflows, including the previously-disclosed $2.1 billion fixed-income institutional redemption that had minimal impacts on revenues.
Month-end equity assets of $415.9 billion increased 6% from the previous month. BEN recorded $137.2 billion in multi-asset class, growing 4.3% from September 2022. Cash-management funds totaled $65.3 billion, rising 13% sequentially.
However, total fixed-income assets were $477.9 billion, down 2.6% from the prior month’s level. Alternative assets aggregated $222.1 billion, down 1.3% from the prior month.
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 support the company in improving and expanding its alternative investments and multi-asset solution platforms.
On Nov 1, 2022, BEN closed the acquisition of BNY Alcentra Group Holdings, Inc., having a total AUM of $35 billion as of Oct 31, 2022. This is likely to boost BEN’s AUM in the upcoming period.
However, any decline in investment management fees due to market fluctuations and adverse foreign-exchange translations remains the key concern for BEN. A strict global regulatory environment is another headwind.
Shares of Franklin have lost 20.9% in the past three months compared with the 4.5% decline of the industry.
Image Source: Zacks Investment Research
Currently, BEN carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Among other asset managers, Lazard (LAZ - Free Report) and T. Rowe Price (TROW - Free Report) are expected to release preliminary AUM results for October in the coming days.
At present, Lazard carries a Zacks Rank #3 (Hold), while T. Rowe Price has a Zacks Rank of 4.