Franklin's AUM Growth on Track, June Number Up 1.3% - Analyst Blog


Franklin Resources Inc. ( BEN ) declared preliminary assets under management (:AUM) of $920.5 billion by its subsidiaries as of Jun 2014, up 1.3% from $908.3 billion as of May 31, 2014. Moreover, it surged 12.9% from $815.0 billion as of Jun 30, 2013.

Notably, total AUM increased from $857.2 billion as of Jan 31, 2014 to $920.5 billion as of Jun 30, 2014, increasing sequentially 2.9%, 0.5%, 1.0%, 1.4% and 1.3%, respectively, in each of the months from Feb 2014 to Jun 2014.

For Jun 2014, month-end total equity assets came in at $382.2 billion for Franklin, up 1.6% from the prior month and 23.9% on a year-over-year basis. Of the total equity assets, around 71% were from international sources, while the remaining 29% were from the U.S.

Total fixed income assets were $363.3 billion, up nearly 1% from the prior month while it fell nearly 1% from the prior-year period. Overall, tax-free assets accounted for only 20% of the fixed income assets, while the remaining 80% were taxable.

Franklin recorded $162.7 billion in hybrid assets, reflecting an increase of 2.4% from the prior month and 25.6% from the prior-year month.

Cash management funds were reported at $6.4 billion, down 5.9% from the prior month while it came in line with in the prior-year month.

Our Viewpoint

We expect the uptrend in AUM to continue going forward as markets are improving, though at a sluggish pace. Further, Franklin's global footprint is a favorable strategic point as its AUM portfolio is well diversified.

Among other asset managers, Legg Mason Inc. ( LM ) and Invesco Ltd. ( IVZ ) are expected to report their monthly AUM data soon.

Franklin currently carries a Zacks Rank #2 (Buy). Noah Holdings Ltd. ( NOAH ) is a better-ranked company in this space with a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BEN , IVZ , LM , NOAH

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