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Franklin Resources' (BEN) April AUM Jumps on Net Market Gains

Zacks Equity Research

Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $720.5 billion for April 2019. Results display 1.2% growth from the $712.3 billion recorded as of Mar 31, 2019. Net market gains, partially offset by net outflows, led to this upside. However, the figure dipped 1.6% from the previous year.

Month-end total equity assets came in at $288.6 billion, up 1.7% from the previous month, but down 6.3% 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 $286.9 billion, around 1% up from March and 3.4% from the prior year. Overall, tax-free assets accounted for only 22% of the fixed-income assets, while the remaining 78% was taxable.

Franklin recorded $135.8 billion in hybrid assets, which was up about 1% from $134.7 billion witnessed in the previous month, but down 1.6% from $138 billion reported in April 2018.

Cash management funds came in at $9.2 billion, up from the prior-month figure of $8.9 billion. The figure also increased from the year-ago tally of $9.1 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 sports a Zacks Rank #1 (Strong Buy). Shares of the company have gained around 10.9% over the last three months compared with 6.8% growth recorded by the industry. You can see the complete list of today’s Zacks #1 Rank stocks here.

Among other asset managers, Invesco Ltd. IVZ, T. Rowe Price Group, Inc. TROW and Legg Mason Inc. LM are expected to release preliminary AUM results for April, later this week.

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