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

Zacks Equity Research

Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $693.1 billion for October 2019. Results display marginal increase from the $692.6 billion recorded as of Sep 30, 2019. Slight net outflows were offset by net market gains. Further, the reported figure inched up 1.5% year on year.

Month-end total equity assets came in at $272 billion, slightly up from the previous month but down 4.4% 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 $276.2 billion, down around 1% from Sep 2019 but up 7.6% 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 $134.9 billion in hybrid assets, slightly up from the $134.3 billion witnessed in the previous month and 1.8% from the $132.5 billion reported in October 2018.

Cash management funds came in at $10 billion, up from the prior-month figure of $9.5 billion and $9.2 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 an exceptionally favorable strategic point as its AUM is well diversified.

Currently, Franklin carries a Zacks Rank #3 (Hold). Shares of the company have lost around 5.8% year to date as against 8.9% 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 October, later this week.

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