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Franklin Resources' (BEN) June AUM Ascends on Market Gains

Zacks Equity Research

Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $715.2 billion for June 2019. Results display a 2.9% increase from the $695 billion recorded as of May 31, 2019. Strong market gains, partly offset by modest net outflows led to this upside. However, the figure edged down 1.2% year on year.

Month-end total equity assets came in at $282.2 billion, up 4.6% from the previous month, but down 9.1% year over year. Of the total equity assets, around 60% were from international sources, while the remaining 40% came in from the United States.

Total fixed income assets were $287.8 billion, around 1.1% up from May and 7.9% 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 $136 billion in hybrid assets, which was up 3.9% from $130.9 billion witnessed in the previous month, but down 1.2% from $137.7 billion reported in June 2018.

Cash management funds came in at $9.2 billion, down from the prior-month figure of $9.7 billion. The figure, however, 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 15.1% over the last six months compared with 15% 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 June, later this week.

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