Franklin Resources Inc.
) declared preliminary assets under management (AUM) of $846.5
billion by its subsidiaries for May 2013. The company's results
exhibited a marginal dip of 0.1% from $847.5 billion as of Apr
30, 2013. However, it increased 23.8% from $683.5 billion as of
May 31, 2012.
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Month-end total equity assets came in at $326.6 billion for
Franklin, rising 0.2% from the prior month, and 21.9% 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 $381.8 billion, declining 0.5%
from $383.7 billion as of Apr 30, 2013, but augmenting 23.3% from
$309.7 billion as of May 31, 2012. Overall, tax-free assets
accounted for only 22% of the fixed income assets, while the
remaining 78% were taxable.
Franklin recorded $132.3 billion in hybrid assets, which inched
up 0.2% from $132.1 billion in the prior month and surged 32.8%
from $99.6 billion in the prior-year month.
Cash management funds were reported at $5.8 billion, in line with
the prior month but waning 6.5% from the prior-year month.
On a quarterly basis, as of Mar 31, 2013, Franklin reported total
AUM of $823.7 billion, up from $781.8 billion as of Dec 31, 2012,
driven by market appreciation of $24.5 billion and $18.3 billion
of net new flows.
Simple monthly average AUM of $807.3 billion during the quarter
climbed 6% sequentially. Net new flows were $18.3 billion versus
$0.3 billion in the prior quarter.
Among other asset managers,
Legg Mason Inc.
) are expected to release their preliminary AUM for May 2013 by
the end of this week.
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 carries a Zacks Rank #3 (Hold). The better
performing company in the same industry with a Zacks Rank #1
(Strong Buy) includes
Virtus Investment Partners, Inc.