Franklin Resources Inc.
) declared preliminary assets under management (AUM) of $857.2
billion by its subsidiaries for Jan 2014. The company's results
exhibited a 2.5% fall from $879.1 billion as of Dec 31, 2013. Yet
it surged 5.9% from $809.8 billion as of Jan 31, 2013.
Month-end total equity assets came in at $353.1 billion for
Franklin, down 3.4% from the prior month but up 11.0% on a
year-over-year basis. Of the total equity assets, around 71% were
from international sources, while the remaining 29% were from the
Total fixed income assets were $351.1 billion, down 2.2% from
$359.0 billion as of Dec 31, 2013 and 2.6% from $360.5 billion as
of Jan 31, 2013. Overall, tax-free assets accounted for only 20%
of the fixed income assets, while the remaining 80% were taxable.
Franklin recorded $146.6 billion in hybrid assets, which inched
down around 1.0% from $147.8 billion in the prior month but
jumped 17.1% from $125.2 billion in the prior-year month.
Cash management funds were reported at $6.4 billion, down from
$6.6 billion in the prior month but up from $5.9 billion in the
On a quarterly basis, as of Dec 31, 2013, total AUM was $879.1
billion, up from $781.8 billion as of Dec 31, 2012, driven by
market appreciation of $77.3 billion and $24.0 billion of net new
flows. Simple monthly average AUM of $865.9 billion during the
quarter climbed 13% year over year.
Franklin's global footprint is a favorable strategic point as its
AUM is well diversified. The company is also poised to benefit
from its strong balance sheet. However, regulatory restrictions
and sluggish economic growth could mar AUM improvement and
Franklin currently carries a Zacks Rank #2 (Buy). However, a
better performing company in the same industry with a Zacks Rank
#1 (Strong Buy) is
Waddell & Reed Financial, Inc.
Among other asset managers,
Legg Mason Inc.
) are expected to release preliminary AUM for Jan 2014 later this
FRANKLIN RESOUR (BEN): Free Stock Analysis
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