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Franklin (BEN) Stock Up Despite April 2023 AUM Declines

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 the global market and 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.

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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.

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