Franklin Resources Inc.
) declared preliminary assets under management (AUM) of $753.9
billion by its subsidiaries for the month of October 2012. The
company's results witnessed a rise of 0.5% from $749.9 billion as
of September 30, 2012. Moreover, it increased 8.6% from $694.1
billion as of October 31, 2011.
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Month-end total equity assets came in at $295.2 billion,
declining 0.6% from the prior month but increasing 4.7% 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 $341.9 billion, inching up 1.7%
from $336.3 billion as of September 30, 2012, and 11.0% from
$308.1 billion as of October 31, 2011. Overall, tax-free assets
accounted for only 25% of the fixed income assets, while the
remaining 75% were taxable.
Franklin recorded $110.8 billion in hybrid assets, which
marginally grew 0.6% from $110.1 billion in the prior month.
Moreover, hybrid assets surged 14.5% from $96.8 billion recorded
in the prior-year month. Cash management funds were reported at
$6.0 billion, down from $6.4 billion in the prior month and also
waning from $7.3 billion in 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 during the quarter
climbed 2% sequentially. Net new flows were $2.9 billion versus
$4.8 billion in the prior quarter.
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 recovery could mar
AUM growth and alleviate costs. Additionally, higher expenses
remain a matter of concern.
Franklin currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating.
Among Franklin's peers,
) is expected to announce its preliminary month-end AUM for
October earlier next week.