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Franklin's (BEN) October AUM Down on Lower Total Assets

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Franklin Resources Inc. (BEN - Free Report) announced preliminary assets under management (AUM) by its subsidiaries of $723 billion for Oct 2016. This is down roughly 1.4% from $733.3 billion as of Sep 30 and nearly 9.7% below $801.1 billion as of Oct 31, 2015.
The month-end total equity assets came in at $295.7 billion, down around 2.6% from the prior month and 10.1% on a year-over-year basis. Of the total equity assets, around 67% were from international sources, while the remaining 33% were from the U.S.

Total fixed income assets were $285.8 billion, down slightly from the prior month and around 11% lower than $321 billion recorded in Oct 2015. Overall, tax-free assets accounted for only 26% of the fixed income assets, while the remaining 74% were taxable.

Franklin recorded $135.2 billion in hybrid assets, which declined nearly 1.6% from $137.4 billion recorded in the prior month and around 6.4% from $144.4 billion in Oct 2015.

Cash management funds were reported at $6.3 billion, up 3.3% sequentially but down about 8.7% from $6.9 billion recorded in Oct 2015.

Franklin’s investment management fees remain under pressure amid muted AUM growth. Moreover, regulatory restrictions continue to pose concerns for the company.

Franklin currently carries a Zacks Rank #4 (Sell).

Among other asset managers, Invesco Ltd. (IVZ - Free Report) and Legg Mason Inc. (LM - Free Report) are expected to release their preliminary AUM for the same period in a few days.

A better-ranked finance company is Apollo Global Management, LLC (APO - Free Report) which has witnessed an upward earnings estimate revision of 3.5% over the past 30 days. Its share price has risen 5.9% in the past six months. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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