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Franklin's (BEN) June AUM Descends, Net Outflows Recorded

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Franklin Resources (BEN - Free Report) has announced preliminary assets under management (AUM) by its subsidiaries of $724.1 billion for June 2018. Results display 1.2% rise from $732.8 billion recorded as of May 31, 2018. Net market declines and net outflows during the month were the negatives. Further, the figure dipped 2.5% from the prior year.

Month-end total equity assets came in at $310.6 billion, down around 1.2% 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 $266.7 billion, down 1.7% from the previous month and 5.8% from the previous year. Overall, tax-free assets accounted for only 25% of the fixed-income assets, while the remaining 75% was taxable.

Franklin recorded $137.7 billion in hybrid assets, which was slightly down from $138.4 billion witnessed in the previous month and 2.5% from the $141.2 billion reported in June 2017.

Cash management funds came in at $9.1 billion, up from the prior-month figure of $8.8 billion, and $6 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.

Currently, Franklin carries a Zacks Rank #3 (Hold). Shares of the company have declined around 26.1% over the last six months compared with the 10.2% 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) , T. Rowe Price Group, Inc. (TROW - Free Report) and Legg Mason Inc. (LM - Free Report) are expected to release preliminary AUM results for June 2018, later this week.

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