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Franklin Resources' (BEN) May AUM Descends on Market Declines

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Franklin Resources (BEN - Free Report) has announced preliminary assets under management (AUM) by its subsidiaries of $695 billion for May 2019. Results display a 3.5% decline from the $720.5 billion recorded as of Apr 30, 2019. Market declines and modest outflows led to this downside. Further, the figure dipped 5.2% year on year.

Month-end total equity assets came in at $269.8 billion, down 6.5% from the previous month, and 14.2% year over year. Of the total equity assets, around 61% were from international sources, while the remaining 39% came in from the United States.

Total fixed income assets were $284.6 billion, around 1% down from April, but up 4.9% from the prior year. Overall, tax-free assets accounted for only 23% of the fixed-income assets, while the remaining 77% was taxable.

Franklin recorded $130.9 billion in hybrid assets, which was down 3.6% from $135.8 billion witnessed in the previous month and 5.4% from $138.4 billion reported in May 2018.

Cash management funds came in at $9.7 billion, up from the prior-month figure of $9.2 billion. The figure also increased from the year-ago tally of $8.8 billion.

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

Currently, Franklin holds a Zacks Rank #2 (Buy). Shares of the company have gained around 4.4% over the last six months compared with 11.1% growth recorded 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 May, later this week.

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