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Franklin January AUM Up on Higher Equity Assets; Shares Gain

Shares of Franklin Resources Inc.BEN inched up 1.86% after the company announced preliminary assets under management (AUM) by its subsidiaries of $728.8 billion for Jan 2017. The results exhibited around 1.2% rise from $720.0 billion as of Dec 31, 2016. However, the figure was almost in line with the prior year.

Month-end total equity assets came in at $305.4 billion, up around 2.4% from the prior month and 5.1% on a year-over-year basis. Of the total equity assets, around 66% were from international sources, while the remaining 33% came from the U.S.

Total fixed income assets were $277.9 billion, up slightly from the previous month, but up 8.2% from the $309.7 billion recorded in Jan 2016. Overall, tax-free assets accounted for only 26% of the fixed income assets, while the remaining 74% was taxable.

Franklin recorded $139.3 billion in hybrid assets, which improved around 1% from $138.3 billion recorded in the prior month and 8.7% from $128.1 billion in Jan 2016.

Cash management funds were reported at $6.2 billion, in line with the prior month, however down from $6.7 billion recorded in Jan 2016.

Though the company's global presence helps it diversify AUM; regulatory restrictions and sluggish economic recovery might impair growth and raise costs. Moreover, Franklin is subject to numerous regulations by the U.S. and non-U.S. regulators, which pose concerns to its operations and may even hurt profitability.

Franklin currently carries a Zacks Rank #3 (Hold). The company's stock gained 28.7% over the past one year, underperforming the 30.9% growth for the Zacks categorized Investment Management industry.

A better-ranked finance company is Apollo Global Management, LLC APO , sporting a Zacks Rank #1 (Strong Buy). The company's shares gained over 86.8% over the past one year. The Zacks Consensus Estimate for the stock climbed 11.4% to $2.25, over the last 30 days, for 2017.

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

Among other asset managers, Invesco Ltd. IVZ reported preliminary month-end AUM of $825.3 billion, up 1.5% from the prior month. The rise was driven by favorable market returns, foreign exchange and net long-term inflows, partially offset by a decline in money market AUM and outflows in PowerShares QQQs.

Legg Mason Inc. LM is expected to release preliminary AUM results for Jan 2017, later this week.

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Invesco PLC (IVZ): Free Stock Analysis Report

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

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

Apollo Global Management, LLC (APO): 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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