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Franklin's (BEN) February AUM Down on Negative Market Returns

Zacks Equity Research

Franklin Resources BEN announced preliminary assets under management (AUM) by its subsidiaries of $656.5 billion for February 2020. Results displayed a 4.6% decrease from $688 billion recorded as of Jan 31, 2020. Net outflows and negative market returns led to the decline. Further, the reported figure dropped 8.1% year on year.

Month-end total equity assets came in at $273.4 billion, down 8.4% from the previous month and 12.7% year over year. Of the total equity assets, around 57% were from international sources, while the remaining 43% came in from the United States.

Total fixed income assets were $269.8 billion, slightly down from January 2020 and 5.6% from the prior-year period. Overall, tax-free assets accounted for only 26% of fixed-income assets, while the remaining 74% was taxable.

Franklin recorded $127.5 billion in hybrid assets, down 5.1% from $134.3 billion witnessed in the previous month and 4.6% from $133.6 billion reported in February 2019.

Cash management funds came in at $10.4 billion, down from the prior-month figure of $10.5 billion but up from $9.6 billion recorded in the previous year.

Though regulatory restrictions and a sluggish economic recovery might mar AUM growth and escalate 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 24.8% in the past three months compared with a 19% decline registered 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 February, later this week.

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