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Franklin's (BEN) May AUM Dips to $1445.9B on Net Outflows

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Franklin Resources, Inc. BEN reported a preliminary asset under management (AUM) balance of $1,445.9 billion for May 2022. This reflects a 0.7% decrease from $1,455.8 billion recorded as of Apr 30, 2022.

Last month's decline in AUM was primarily due to the long-term net outflows, partially offset by favorable impacts of markets.

Total fixed-income assets were $559.3 billion, down 0.6% from the April 2022 reading. Month-end equity assets of $462.6 billion declined 1.2% from the previous month’s level. Cash-management funds totaled $58.4 billion, down 5.8% sequentially.

Nonetheless, alternative assets aggregated $220.2 billion, up 0.6% from the prior month’s level. Franklin recorded $145.4 billion in multi-asset class, up 0.9% from April 2022.

Franklin seems well-poised for growth on the back of a robust foothold in the global market and acquisition moves. Earlier this month, Franklin entered into an agreement with The Bank of New York Mellon Corporation BK to acquire BNY Alcentra Group Holdings, Inc. from the latter.

Notably, through the acquisition of Alcentra, Franklin’s U.S. alternative credit specialist investment manager, Benefit Street Partners, will be able to expand its alternative credit capabilities and presence in Europe, doubling its AUM to $77 billion globally.

The transaction is expected to continue strengthening the breadth and scale of Franklin’s alternative asset strategies, bringing the firm-wide alternative AUM to $257 billion.

However, any decline in investment management fees due to market fluctuations and adverse foreign-exchange translations remain key concerns for Franklin. A strict global regulatory environment is another headwind.

Shares of Franklin have plunged 24.7% in the past year compared with the 23.1% decline of the industry.

Zacks Investment Research
Zacks Investment Research


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Currently, BEN carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Among other asset managers, Lazard LAZ and T. Rowe Price TROW are expected to release preliminary AUM results for May in the coming days.

At present, Lazard and T. Rowe Price carry a Zacks Rank of 3.


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The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report
 
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