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Franklin Resources' (BEN) December AUM Up on Net Market Gains

Zacks Equity Research

Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $698.3 billion for December 2019. Results display 1% increase from the $691.3 billion recorded as of Nov 30, 2019. Net market gains were partly offset by net outflows. Further, the reported figure climbed 7.4% year on year.

Month-end total equity assets came in at $280.5 billion, up around 2.2% from the previous month and 6.6% year over year. Of the total equity assets, around 58% were from international sources, while the remaining 42% came in from the United States.

Total fixed income assets were $270.9 billion, down around 0.4% from November 2019 but up 7.5% from the prior year. Overall, tax-free assets accounted for only 25% of the fixed-income assets, while the remaining 75% was taxable.

Franklin recorded $136.5 billion in hybrid assets, up 1.4% from the $134.6 billion witnessed in the previous month, and 9.4% from the $124.8 billion reported in December 2018.

Cash-management funds came in at $10.4 billion, up from the prior-month figure of $10.2 billion and $10.1 billion recorded in the previous year.

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

Currently, Franklin carries a Zacks Rank #3 (Hold). Shares of the company have lost around 16.9% in the past year as against 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, T. Rowe Price Group, Inc. TROW and Legg Mason Inc. LM are expected to release preliminary AUM results for December, earlier next week.

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