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Franklin's (BEN) February AUM Down on Negative Market Returns

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Franklin Resources (BEN - Free Report) announced preliminary assets under management (AUM) by its subsidiaries of $656.5 billion for February 2020. Results displayed a 4.6% decrease from $688 billion recorded as of Jan 31, 2020. Net outflows and negative market returns led to the decline. Further, the reported figure dropped 8.1% year on year.

Month-end total equity assets came in at $273.4 billion, down 8.4% from the previous month and 12.7% year over year. Of the total equity assets, around 57% were from international sources, while the remaining 43% came in from the United States.

Total fixed income assets were $269.8 billion, slightly down from January 2020 and 5.6% from the prior-year period. Overall, tax-free assets accounted for only 26% of fixed-income assets, while the remaining 74% was taxable.

Franklin recorded $127.5 billion in hybrid assets, down 5.1% from $134.3 billion witnessed in the previous month and 4.6% from $133.6 billion reported in February 2019.

Cash management funds came in at $10.4 billion, down from the prior-month figure of $10.5 billion but up from $9.6 billion recorded in the previous year.

Though regulatory restrictions and a 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 carries a Zacks Rank #3 (Hold). Shares of the company have lost around 24.8% in the past three months compared with a 19% decline registered 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. are expected to release preliminary AUM results for February, later this week.

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