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Franklin's (BEN) March 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 $1.64 trillion as of Mar 31, 2024. This reflected an increase of 1.4% from the prior month’s level.
The improvement was driven by positive markets and long-term net inflows of $8.1 billion related to Great-West Lifeco.
For the quarter ended Mar 31, 2024, AUM was boosted by the upbeat markets and long-term net inflows of $6.9 billion. This included $13.6 billion related to Great-West Lifeco, offset by a fixed-income institutional client redemption of $2 billion.
BEN recorded equity assets of $592.7 billion, which rose 3.5% from the previous month. Further, fixed income AUM of $571.4 billion at the end of March 2024 increased 1.3% from the previous month. Also, multi-asset AUM was $163.4 billion, which increased marginally from February 2024.
However, the cash management balance was $61.7 billion, down 6.9% from the prior month’s level. Additionally, alternative assets were $255.5 billion, which decreased slightly from the prior month’s level.
Franklin’s efforts to grow inorganically and diversify its business 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 9.1% and 2.9% by fiscal 2026, respectively. However, elevated expenses and volatility in investment management fees, which bring in the majority of its revenues, are near-term concerns.
Performance of Other Asset Managers
This week, Virtus Investment Partners, Inc. (VRTS - Free Report) recorded a preliminary AUM of $179.3 billion for March 2024, up 1.8% as of Feb 29, 2024. VRTS offered services to $2.7 billion of other fee-earning assets. This was excluded from the above-mentioned AUM balance.
Victory Capital Holdings, Inc. (VCTR - Free Report) recently reported an AUM of $170.3 billion for March 2024. This reflected a 3.3% rise from $164.9 billion reported in the prior month.
By asset class, VCTR’s U.S. Mid Cap Equity AUM was $32.9 billion, up 5.2 % from the prior month’s level. The U.S. Small Cap Equity AUM of $16.3 billion increased 3.8%. The Global/Non-U.S. Equity AUM rose 6.7% to $18.2 billion. The U.S. Large Cap Equity AUM increased 2.9% to $13.9 billion.
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Franklin's (BEN) March AUM Benefits From Upbeat Markets
Franklin Resources, Inc. (BEN - Free Report) reported its preliminary month-end assets under management (AUM) of $1.64 trillion as of Mar 31, 2024. This reflected an increase of 1.4% from the prior month’s level.
The improvement was driven by positive markets and long-term net inflows of $8.1 billion related to Great-West Lifeco.
For the quarter ended Mar 31, 2024, AUM was boosted by the upbeat markets and long-term net inflows of $6.9 billion. This included $13.6 billion related to Great-West Lifeco, offset by a fixed-income institutional client redemption of $2 billion.
BEN recorded equity assets of $592.7 billion, which rose 3.5% from the previous month. Further, fixed income AUM of $571.4 billion at the end of March 2024 increased 1.3% from the previous month. Also, multi-asset AUM was $163.4 billion, which increased marginally from February 2024.
However, the cash management balance was $61.7 billion, down 6.9% from the prior month’s level. Additionally, alternative assets were $255.5 billion, which decreased slightly from the prior month’s level.
Franklin’s efforts to grow inorganically and diversify its business 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 9.1% and 2.9% by fiscal 2026, respectively. However, elevated expenses and volatility in investment management fees, which bring in the majority of its revenues, are near-term concerns.
Performance of Other Asset Managers
This week, Virtus Investment Partners, Inc. (VRTS - Free Report) recorded a preliminary AUM of $179.3 billion for March 2024, up 1.8% as of Feb 29, 2024. VRTS offered services to $2.7 billion of other fee-earning assets. This was excluded from the above-mentioned AUM balance.
Victory Capital Holdings, Inc. (VCTR - Free Report) recently reported an AUM of $170.3 billion for March 2024. This reflected a 3.3% rise from $164.9 billion reported in the prior month.
By asset class, VCTR’s U.S. Mid Cap Equity AUM was $32.9 billion, up 5.2 % from the prior month’s level. The U.S. Small Cap Equity AUM of $16.3 billion increased 3.8%. The Global/Non-U.S. Equity AUM rose 6.7% to $18.2 billion. The U.S. Large Cap Equity AUM increased 2.9% to $13.9 billion.