Franklin's (BEN) October 2018 AUM Down 4.8% on Net Outflows

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Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $682.7 billion for October 2018. Results display a 4.8% fall from $717.1 billion recorded as of Sep 30, 2018. Net market losses and net outflows were undermining factors. Further, the figure dipped 9.1% from the previous year. Notably, shares of Franklin also declined more than 2% following the AUM release.

Month-end total equity assets came in at $284.4 billion, down around 8.1% from the previous month and 10.5% year over year. Of the total equity assets, around 63% were from international sources, while the remaining 37% came in from the United States.

Total fixed income assets were $256.6 billion, down 1% from the previous month and around 9.5% from last year. Overall, tax-free assets accounted for only 24% of the fixed-income assets, while the remaining 76% was taxable.

Franklin recorded $132.5 billion in hybrid assets, which was 4.6% down from $138.9 billion witnessed in the previous month and decreased 7.3% from $143 billion reported in October 2017.

Cash management funds came in at $9.2 billion, down from the prior-month figure of $9.3 billion, but up from the year-ago tally of $6.5 billion.

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.

Currently, Franklin carries a Zacks Rank #5 (Strong Sell). Shares of the company have declined around 8.4% over the last six months compared with the 16.1% loss incurred by 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, Inc. TROW and Legg Mason Inc. LM are expected to release preliminary AUM results for October 2018, later this week.

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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: LM , TROW , IVZ , BEN

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