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Franklin's (BEN) April AUM Falls on Consistent Net Outflows


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Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $732.5 billion for April 2018. Results display nearly 1% drop from $737.5 billion recorded as of Mar 31, 2018. Net outflows were primarily responsible for this decline but were partially offset by market appreciation. Further, the figure fell 1.1% from the prior year.

Month-end total equity assets came in at $308 billion, down marginally from the previous month, and 1.1% year over year. Of the total equity assets, around 65% was from international sources while the remaining 35% came in from the United States.

Total fixed income assets were $277.4 billion, down about 1% from the previous month and 1.5% from the prior year. Overall, tax-free assets accounted for only 24% of the fixed-income assets while the remaining 76% was taxable.

Franklin recorded $138 billion in hybrid assets, which was up moderately from the $137.6 billion witnessed in the previous month and down 2.4% from the $141.4 billion reported in April 2017.

Cash management funds came in at $9.1 billion, down from the prior-month figure of $10.4 billion and up from $6.4 billion recorded in the year-ago period.

The company's global footprint is an exceptionally favorable strategic point as its AUM is well diversified. Nevertheless, regulatory restrictions and sluggish economic recovery might mar AUM growth and escalate costs.

Franklin currently carries a Zacks Rank #3 (Hold). Shares of the company have lost around 10.8% over the past six months compared with 1.6% growth of the industry .

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Among other asset managers, Invesco Ltd. IVZ , T. Rowe Price Group TROW and Legg Mason LM are expected to release preliminary AUM results for April 2018, later this week.

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T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report

Invesco Ltd. (IVZ): Free Stock Analysis Report

Legg Mason, Inc. (LM): Free Stock Analysis Report

Franklin Resources, Inc. (BEN): Free Stock Analysis Report

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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 Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: TROW , IVZ , LM , BEN



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