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Franklin’s (BEN) October AUM Down on Low Fixed Income Assets


Franklin Resources Inc. BEN announced preliminary assets under management (AUM) by its subsidiaries of $750.7 billion for October 2017. Results displayed marginal fall from $753.2 billion recorded as of Sep 30, 2017. However, the figure moved up 3.8% from the prior-year quarter.

Month-end total equity assets came in at $317.7 billion, slightly up from the prior month and 7.4% year over year. Of the total equity assets, around 66% were from international sources, while the remaining 34% came in from the United States.

Total fixed income assets were $283.5 billion, down 1.1% from the previous month and around 1% from the prior year. Overall, tax-free assets accounted for only 25% of the fixed income assets, while the remaining 75% was taxable.

Franklin recorded $143 billion in hybrid assets, which was down slightly from $143.3 billion recorded in the previous month but up 5.8% from $135.2 billion recorded in October 2016.

Cash management funds were reported at $6.5 billion, up from $6.3 billion recorded both in the prior month, as well as the year-ago period.

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.

Franklin currently carries a Zacks Rank #3 (Hold). Shares of the company have gained around 5.8% so far, this year, underperforming 26.5% 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 2017, earlier next week.

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