Franklin Resources, Inc. BEN reported a preliminary asset under management (AUM) balance of $1,420.7 billion for April 2023. This reflected a marginal decline from $1,422.1 billion recorded as of Mar 31.
Cash management net outflows resulted in the downside offsetting positive impacts of market and the flat long-term net inflows. The long-term net inflows included a low-fee $3.2 billion equity mandate.
Month-end total fixed-income assets were $510.4 billion, up marginally from the prior month’s level. Equity assets of $441.6 billion increased 1% from March 2023. BEN recorded $146.8 billion in multi-asset class, up marginally from the prior month’s level.
Alternative assets aggregated $257.8 billion, down marginally from the prior month. Also, cash-management funds totaled $64.1 billion, declining 9.2% sequentially.
Despite a diversified character, the company’s AUM is exposed to market fluctuations, foreign exchange translations, regulatory changes and a sudden slowdown in overall business activities, which might act as near-term headwinds. Hence, any decline in investment management fees due to market fluctuations remains a key concern for BEN.
Nonetheless, Franklin seems well-poised for growth on the back of a robust foothold in theglobal marketand revenue-diversification efforts. Also, it is growing through strategic acquisitions. These are supporting the company in improving and expanding its alternative investments and multi-asset solution platforms.
Shares of Franklin have lost 20.9% in the past three months compared with a 8.6% decrease of the industry.
Image Source: Zacks Investment Research
Zacks Rank
Currently, BEN carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Competitive Landscape
Cohen & Steers CNS reported preliminary AUM of $80.9 billion as of Apr 30, which reflected an increase of 1.3% from the prior-month level.
Market appreciation of $1.3 billion supported the rise in the AUM balance partially offset by net outflows of $86 million and distributions of $185 million.
Invesco IVZ announced preliminary AUM for April 2023. The company’s month-end AUM of $1,484.3 billion represented a marginal increase from the previous month.
IVZ’s AUM was positively impacted by favorable market returns, which increased it by $1.3 billion. It experienced net long-term outflows of $2.2 billion and non-management fee-earning net outflows of $2.1 billion. Money market net inflows were $1.4 billion.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
Invesco Ltd. (IVZ) : Free Stock Analysis Report
Cohen & Steers Inc (CNS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
