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Franklin’s (BEN) August AUM Descends 1.5% on Net Outflows


Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $722.4 billion for August 2018. Results display 1.5% fall from $733.7 billion recorded as of Jul 31, 2018. Net market losses and net outflows were undermining factors. Further, the figure dipped 3.3% from the previous year.

Month-end total equity assets came in at $312.9 billion, down around 1.1% from the previous month and marginally year over year. Of the total equity assets, around 63% were from international sources, while the remaining 37% came in from the United States.

Total fixed income assets were $260.4 billion, down 2.8% from the previous month and around 9% from the previous year. Overall, tax-free assets accounted for only 25% of the fixed-income assets, while the remaining 75% was taxable.

Franklin recorded $139.8 billion in hybrid assets, which was marginally down from $140.2 billion witnessed in the previous month and edged down 1.2% from $141.5 billion reported in August 2017.

Cash management funds came in at $9.3 billion, up from the prior-month figure of $9 billion, as well as the year-ago tally of $6.1 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 carries a Zacks Rank #4 (Sell). Shares of the company have declined around 21.1% over the last six months compared with the 11.4% loss incurred 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 August 2018, later this week.

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