Franklin Resources Inc.
) declared preliminary assets under management (AUM) of $781.8
billion by its subsidiaries for December 2012. The company's
results witnessed a rise of 1.7% from $768.8 billion as of
November 30, 2012. Moreover, it increased 16.6% from $675.8
billion as of November 30, 2011.
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Month-end total equity assets came in at $303.4 billion,
increasing 2.7% from the prior month, and 12.3% on a
year-over-year basis. Of the total equity assets, around 73% were
from international sources, while the remaining 27% were from the
Total fixed income assets were $351.7 billion, marginally rising
from $348.5 billion as of November 30, 2012, and augmenting 18.1%
from $297.7 billion as of December 30, 2011. Overall, tax-free
assets accounted for only 24% of the fixed income assets, while
the remaining 76% were taxable.
Franklin recorded $121.0 billion in hybrid assets, which edged up
1.8% from $118.9 billion in the prior month and surged 25.5% from
$96.4 billion in the prior-year month.
Cash management funds were reported at $5.7 billion, waning 5%
from the prior month as well as the prior-year month.
On a quarterly basis, as of September 30, 2012, total AUM was
$749.9 billion, up from $707.1 billion as of June 30, 2012,
driven by market appreciation of $40.8 billion and net new flows
of $2.9 billion.
Simple monthly average AUM of $726.7 billion climbed 2%
sequentially. Net new flows were $2.9 billion versus $4.8 billion
in the prior quarter.
Among Franklin's peers,
) recorded a marginal rise in its preliminary month-end assets
under management (AUM) for December 2012. The AUM for the month
was $687.7 billion compared with $683.8 billion at the end of
Franklin's global footprint is an exceptionally 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 concern.
Franklin currently retains a Zacks Rank #2, which translates into
a short-term Buy rating.