Markets

Franklin's (BEN) June AUM Up Marginally on Market Gains

Franklin Resources BEN announced preliminary assets under management (AUM) by its subsidiaries of $622.8 billion for June 2020. Results displayed a 0.8% increase from the $617.6 billion recorded as of May 31, 2020. Lower net outflows and a solid market performance led to this upsurge. However, the reported figure dropped 12.9% year on year.

Month-end total equity assets came in at $243 billion, up 2.3% from the previous month but down 13.9% year over year. Of the total equity assets, around 52% came in from international sources, while the remaining 48% came in from the United States.

Total fixed income assets were $240.1 billion, marginally down from May 2020 and 16.6% from the prior-year period. Overall, tax-free assets accounted for only 28% of fixed-income assets, while the remaining 72% was taxable.

Franklin recorded $129.3 billion in hybrid assets, up marginally from the $129.1 billion witnessed in the previous month but down 4.9% from the $136 billion reported in June 2019.

Cash management funds came in at $10.4 billion, up 2% from the prior-month figure of $9.2 billion and up 13% from the $9.2 billion recorded in the previous year.

Though regulatory restrictions and a sluggish economic recovery might impede AUM growth and escalate costs, the company’s global footprint is an exceptionally favorable strategic point as its AUM is well diversified.

Currently, Franklin sports a Zacks Rank #1 (Strong Buy). Shares of the company have gained 34.6% in the past three months compared with 24.1% growth registered by the industry. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Asset Managers

AllianceBernstein AB announced preliminary AUM of $600 billion for June, up 0.7% from the prior month. Market appreciation and total firm-wide net inflows primarily aided this upswing.

Cohen & Steers CNS reported preliminary AUM of $66.3 billion as of Jun 30, 2020, which increased 3.9% from the prior-month level. Market appreciation of $910 million and net inflows of $2.2 billion were partially offset by distributions of $642 million.

Waddell & Reed Financial’s WDR preliminary month-end AUM balance as of Jun 30, 2020 increased 1.6% sequentially to $65 billion.

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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.

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