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Franklin's (BEN) May AUM Ascends, Net Outflows Recorded

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Franklin Resources (BEN - Free Report) has announced preliminary assets under management (AUM) by its subsidiaries of $732.8 billion for May 2018. Results display a marginal rise from $732.5 billion recorded as of Apr 30, 2018. Acquisition of Edinburgh Partners Limited was primarily responsible for this increase. However, net market declines and net outflows during the month mostly offset the upside. Further, the figure edged down 1.6% from the prior year.

Month-end total equity assets came in at $314.3 billion, up around 2% from the previous month, and marginally year over year. Of the total equity assets, around 65% were from international sources, while the remaining 35% came in from the United States.

Total fixed income assets were $271.3 billion, down 2.2% from the previous month and 3.9% from the prior year. Overall, tax-free assets accounted for only 24% of the fixed-income assets, while the remaining 76% was taxable.

Franklin recorded $138.4 billion in hybrid assets, which was slightly up from $138 billion witnessed in the previous month, but down 2.7% from the $142.3 billion reported in May 2017.

Cash management funds came in at $8.8 billion, down from the prior-month figure of $9.1 billion, but up from $6.3 billion recorded in the year-ago period.

The company’s global footprint is an exceptionally favorable strategic point as its AUM is well diversified. Nevertheless, regulatory restrictions and sluggish economic recovery might mar AUM growth and escalate costs.

Franklin carries a Zacks Rank #3 (Hold). Shares of the company have declined around 21.5% over the last six months compared with the 1.1% loss incurred by the industry.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other asset managers, Invesco Ltd. (IVZ - Free Report) reported preliminary month-end AUM of $977.3 billion for May 2018. The figure reflects slight increase from the prior month. Further, T. Rowe Price Group, Inc. (TROW - Free Report) and Legg Mason Inc. (LM - Free Report) are expected to release preliminary AUM results for May 2018, later this week.

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