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Franklin Resources' (BEN) November AUM Down on Net Outflows

Zacks Equity Research

Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $691.3 billion for November 2019. Results display marginal decrease from the $693.1 billion recorded as of Oct 31, 2019. Net outflows were partly offset by net market gains. Further, the reported figure inched up 1.2% year on year.

Month-end total equity assets came in at $274.5 billion, up around 1% from the previous month but down 4.1% 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 $272 billion, down around 1.5% from October 2019 but up 6.4% from the prior year. Overall, tax-free assets accounted for only 24% of the fixed-income assets, while the remaining 76% was taxable.

Franklin recorded $134.6 billion in hybrid assets, slightly down from the $134.9 billion witnessed in the previous month but up 1.8% from the $132.2 billion reported in November 2018.

Cash-management funds came in at $10.2 billion, up from the prior-month figure of $10 billion and $9.3 billion recorded in the previous year.

Though regulatory restrictions and sluggish economic recovery might mar 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 8.9% year to date as against 9.8% 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 November, later this week.

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