Franklin Resources Inc.
) declared preliminary assets under management (AUM) of $868.9
billion by its subsidiaries for Oct 2013. The company's results
exhibited an increase of 2.9% from $844.7 billion as of Sep 30,
2013. Moreover, it surged 15.3% from $753.9 billion as of Oct 31,
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Month-end total equity assets came in at $357.4 billion for
Franklin, up 4.8% from the prior month and 21.1% on a
year-over-year basis. Of the total equity assets, around 72% were
from international sources, while the remaining 28% were from the
Total fixed income assets were $362.6 billion, inching up 0.9%
from $359.5 billion as of Sep 30, 2013 and augmenting 6.1% from
$341.9 billion as of Oct 31, 2012. Overall, tax-free assets
accounted for only 20% of the fixed income assets, while the
remaining 80% were taxable.
Franklin recorded $142.3 billion in hybrid assets, which jumped
3.5% from $137.5 billion in the prior month and 28.4% from $110.8
billion in the prior-year month.
Cash management funds were reported at $6.6 billion, in line with
the prior month but increased 10.0% from the prior-year month.
On a quarterly basis, as of Sep 30, 2013, Franklin reported total
AUM of $844.7 billion, up 4.0% from $815.0 billion as of Jun 30,
2013, driven by market appreciation of $33.1 billion.
Simple monthly average AUM of $827.8 billion during the quarter
decreased 1.0% sequentially, but increased 14.0% year over year.
Net new flows were negative $2.7 billion versus $8.4 billion in
the prior quarter and $2.9 billion in the prior-year quarter.
) reported a rise in its preliminary month-end AUM for Oct 2013.
The AUM for the month was $763.9 billion, up 2.5% from $745.5
billion at the end of Sep 2013. Favorable market returns and
positive long-term net flows primarily supported the growth.
However, foreign exchange led to a $1.2 billion decline in AUM.
Among other asset managers,
Legg Mason Inc.
) is expected to release its preliminary AUM for Oct 2013 by the
end of this week.
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
alleviate costs. Additionally, higher expenses remain a matter of
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.