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Franklin's (BEN) February AUM Benefits From Upbeat Markets
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Franklin Resources, Inc. (BEN - Free Report) reported its preliminary month-end assets under management (AUM) of $1.62 trillion as of Feb 29, 2024. This reflected an increase of 1.3% from the prior month’s level.
The improvement was driven by positive markets and long-term net inflows, including the previously disclosed $5.5 billion in the retirement channel. However, fixed-income institutional client redemption of $2 billion affected the AUM balance.
BEN recorded equity assets of $572.8 billion, which increased 4% from the previous month. Further, multi-asset AUM was $162.5 billion, which increased 1.2% from January 2024.
However, fixed income AUM of $564.3 billion at the end of February 2024 decreased slightly from the January-end level. Also, the cash management balance was $66.3 billion, down 2.6% from the prior month’s level.
Additionally, alternative assets were $256.4 billion, which remained unchanged from the prior month’s level.
Franklin’s global reach and investment strategies and acquisitions are expected to support its financials. Also, a strong AUM balance will continue to support top-line growth. We expect AUM and revenues to witness a compound annual growth rate of 7.4% and 2.9% by fiscal 2026, respectively. However, elevated expenses and high reliance on investment management fees for the bulk of its revenues are near-term concerns.
Over the past three months, shares of Franklin have gained 9.6% compared with the industry’s growth of 22.5%.
This week, Virtus Investment Partners, Inc. (VRTS - Free Report) recorded a preliminary AUM of $176.1 billion for February 2024, down 3% as of Jan 31, 2024. The company offered services to $2.6 billion of other fee-earning assets. This was excluded from the above-mentioned AUM balance.
Victory Capital Holdings, Inc. (VCTR - Free Report) recently reported AUM of $164.9 billion for February 2024. This reflected a 2.9% rise from $160.2 billion reported in the prior month.
By asset class, VCTR’s U.S. Mid Cap Equity AUM was up 4.4% from the January level to $31.3 billion. The U.S. Small Cap Equity AUM of $15.7 billion increased 3%. The Global/Non-U.S. Equity AUM rose 3.4% to $17.1 billion. The U.S. Large Cap Equity AUM increased 5.5% to $13.5 billion.
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Franklin's (BEN) February AUM Benefits From Upbeat Markets
Franklin Resources, Inc. (BEN - Free Report) reported its preliminary month-end assets under management (AUM) of $1.62 trillion as of Feb 29, 2024. This reflected an increase of 1.3% from the prior month’s level.
The improvement was driven by positive markets and long-term net inflows, including the previously disclosed $5.5 billion in the retirement channel. However, fixed-income institutional client redemption of $2 billion affected the AUM balance.
BEN recorded equity assets of $572.8 billion, which increased 4% from the previous month. Further, multi-asset AUM was $162.5 billion, which increased 1.2% from January 2024.
However, fixed income AUM of $564.3 billion at the end of February 2024 decreased slightly from the January-end level. Also, the cash management balance was $66.3 billion, down 2.6% from the prior month’s level.
Additionally, alternative assets were $256.4 billion, which remained unchanged from the prior month’s level.
Franklin’s global reach and investment strategies and acquisitions are expected to support its financials. Also, a strong AUM balance will continue to support top-line growth. We expect AUM and revenues to witness a compound annual growth rate of 7.4% and 2.9% by fiscal 2026, respectively. However, elevated expenses and high reliance on investment management fees for the bulk of its revenues are near-term concerns.
Over the past three months, shares of Franklin have gained 9.6% compared with the industry’s growth of 22.5%.
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At present, Franklin carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
This week, Virtus Investment Partners, Inc. (VRTS - Free Report) recorded a preliminary AUM of $176.1 billion for February 2024, down 3% as of Jan 31, 2024. The company offered services to $2.6 billion of other fee-earning assets. This was excluded from the above-mentioned AUM balance.
Victory Capital Holdings, Inc. (VCTR - Free Report) recently reported AUM of $164.9 billion for February 2024. This reflected a 2.9% rise from $160.2 billion reported in the prior month.
By asset class, VCTR’s U.S. Mid Cap Equity AUM was up 4.4% from the January level to $31.3 billion. The U.S. Small Cap Equity AUM of $15.7 billion increased 3%. The Global/Non-U.S. Equity AUM rose 3.4% to $17.1 billion. The U.S. Large Cap Equity AUM increased 5.5% to $13.5 billion.