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Franklin Resources' (BEN) July AUM Descends on Net Outflows

Zacks Equity Research

Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $709.5 billion for July 2019. Results display slight decrease from the $715.2 billion recorded as of Jun 30, 2019. Net outflows and net market change led to this downside. Further, the reported figure went down 3.3% year on year.

Month-end total equity assets came in at $276.6 billion, down 2% from the previous month and 12.6% year over year. Of the total equity assets, around 59% were from international sources, while the remaining 41% came in from the United States.

Total fixed income assets were $287.9 billion, almost in line with June and up 7.4% 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 $135.4 billion in hybrid assets, which was slightly down from $136 billion witnessed in the previous month and 3.4% from the $140.2 billion reported in July 2018.

Cash management funds came in at $9.6 billion, up from the prior-month figure of $9.2 billion and $9 billion in the prior year.

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 carries a Zacks Rank #3 (Hold). Shares of the company have gained around 3% year to date compared with 10.8% 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 July, earlier next week.

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