Franklin Resources' September AUM Jumps on Net Market Gains

Franklin Resources BEN has announced preliminary assets under management (AUM) by its subsidiaries of $692.6 billion for September 2019. Results display slight increase from $690.6 billion recorded as of Aug 31, 2019. Net market gains, partially offset by net outflows, led to this upside. However, the reported figure went down 3.4% year over year.

Month-end total equity assets came in at $270.5 billion, up 1.3% from the previous month but down 12.6% year over year. Of the total equity assets, around 59% were from international sources, while the remaining 41% came in from the United States.

Total fixed income assets were $278.3 billion, down nearly 1% from August 2019 but up 7.3% 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 $134.3 billion in hybrid assets, which was about 1% up from $133.2 billion witnessed in the previous month but down 3.3% from $138.9 billion reported in September 2018.

Cash management funds came in at $9.5 billion, down 2% from the prior-month figure of $9.7 billion, and up 2.2% from $9.3 billion recorded in the previous year.

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

Currently, Franklin carries a Zacks Rank #3 (Hold). Shares of the company have lost around 11.1% year to date compared with 8.6% decline recorded by the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

Invesco IVZ announced preliminary September-end AUM of $1,184.4 billion, up nearly 1% from the prior month. The increase was driven by favorable market returns, non-management fee earning AUM inflows and reinvested distributions, partially offset by net long-term outflows and lower money market AUM.

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

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Legg Mason, Inc. (LM) : Free Stock Analysis Report
 
T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
 
Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
 
Invesco Ltd. (IVZ) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research