U.S. Markets close in 1 hr 4 mins

Franklin Resources (BEN) March 2019 AUM Falls on Net Outflows

Zacks Equity Research

Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $712.3 billion for March 2019. Results display marginal decline from $714.2 billion recorded as of Feb 28, 2019. Net outflows, partially offset by positive market change and other, led to this fall. Moreover, the figure dipped 3.4% from the previous year.

Month-end total equity assets came in at $283.9 billion, down 1.1% from the previous month and down 8.2% year over year. Of the total equity assets, around 61.4% were from international sources, while the remaining 38.6% came in from the United States.

Total fixed income assets were $284.8 billion, up marginally from February and 1.6% from the prior year. Overall, tax-free assets accounted for only 22.3% of the fixed-income assets, while the remaining 77.7% was taxable.

Franklin recorded $134.7 billion in hybrid assets, which was up nearly 1% from $133.6 billion witnessed in the previous month, but down 2.1% from $137.6 billion reported in March 2018.

Cash management funds came in at $8.9 billion, down from the prior-month figure of $9.6 billion and the year-ago tally of $10.4 billion.

The company’s global footprint is an exceptionally favorable strategic point as its AUM is well diversified. Nevertheless, regulatory restrictions and sluggish economic recovery might mar AUM growth, and escalate costs.

Currently, Franklin flaunts a Zacks Rank #1 (Strong Buy). Shares of the company have gained around 15.7% over the last three months compared to the 12.9% rise recorded by the industry.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Among other asset managers, Invesco Ltd.’s IVZ, T. Rowe Price Group, Inc. TROW and Legg Mason Inc. LM are expected to release preliminary AUM results for March, later this week.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco Ltd. (IVZ) : Free Stock Analysis Report
Legg Mason, Inc. (LM) : Free Stock Analysis Report
Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research