Yahoo Finance Franklin's (BEN) February AUM Down 2.4% on Weak Markets
Franklin Resources, Inc. BEN reported a preliminary asset under management (AUM) balance of $1,416.5 billion for February 2023. This reflects a 2.4% decrease from $1,451.9 billion recorded as of Jan 31.
The decline in AUM balance was primarily due to the impact of negative markets which was partially offset by long-term net inflows. These inflows included $7.5 billion institutional mandate which was invested across fixed income strategies.
Month-end total fixed-income assets were $502.4 billion, down 1.9% from the prior month’s level. Equity assets of $431.9 billion decreased 3.1% from January 2023.
Alternative assets aggregated $256.3 billion, down marginally from the prior month. BEN recorded $144.2 billion in multi-asset class, decreasing 2% from the prior month’s level. Also, cash-management funds totaled $81.7 billion, declining 8.4% sequentially.
Despite a diversified character, the company’s AUM is exposed to market fluctuations, foreign-exchange translations, regulatory changes or 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 gained 2.9% in the past three months against a loss of 1.5% of the industry.
Image Source: Zacks Investment Research
Currently, BEN carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Among other asset managers, Invesco IVZ and T. Rowe Price TROW are expected to release preliminary AUM results for February in the coming days.
At present, both Invesco and T. Rowe Price carry a Zacks Rank #3.
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