Franklin Resources, Inc. Announces Month-End Assets Under Management

Rhea-AI Summary

Franklin Resources, Inc. (NYSE: BEN) reported preliminary month-end assets under management (AUM) of $1.68 trillion at August 31, 2024, up from $1.66 trillion at July 31, 2024. The increase was attributed to positive market impact, partially offset by long-term net outflows of $6.3 billion. Western Asset Management experienced $7.7 billion in long-term net outflows. By asset class, Equity AUM rose to $618.8 billion, Fixed Income to $574.5 billion, while Alternative AUM decreased to $251.2 billion. Multi-Asset and Cash Management AUM also saw increases. The company's Macro Opportunities strategy, which is closing, had $1.1 billion AUM and $0.9 billion net outflows in August.

Positive

• Total AUM increased from $1.66 trillion to $1.68 trillion month-over-month
• Equity AUM rose from $603.7 billion to $618.8 billion
• Fixed Income AUM increased from $571.3 billion to $574.5 billion
• Multi-Asset AUM grew from $171.7 billion to $172.9 billion
• Cash Management AUM increased from $61.5 billion to $64.3 billion

Negative

• Long-term net outflows of $6.3 billion
• Western Asset Management experienced $7.7 billion in long-term net outflows
• Alternative AUM decreased from $254.9 billion to $251.2 billion
• Macro Opportunities strategy is closing, with $0.9 billion net outflows in August

Insights

Financial Analyst

Franklin Resources' August AUM report shows a modest increase to $1.68 trillion, up from $1.66 trillion in July. While positive market performance boosted assets, the company faced significant long-term net outflows of $6.3 billion. Notably, Western Asset Management contributed $7.7 billion to these outflows, indicating potential challenges in retaining assets.

The equity segment saw the largest growth, increasing by $15.1 billion to $618.8 billion, likely benefiting from market gains. However, the alternative segment experienced a slight decline, which could be partially attributed to the closing Macro Opportunities strategy.

Year-over-year, Franklin Resources has shown substantial growth, with total AUM up 18.3% from August 2023. This growth, despite ongoing outflows, suggests the company's acquisition strategy and market performance have been key drivers of expansion.

Market Research Analyst

The persistent outflows at Franklin Resources, particularly at Western Asset Management, signal potential investor dissatisfaction or a shift in market preferences. This trend warrants closer examination of the firm's investment strategies and performance across various asset classes.

The growth in equity AUM aligns with broader market trends, as major indices have performed well. However, the stagnation in fixed income and alternative assets suggests challenges in these segments. The closure of the Macro Opportunities strategy in the alternative category may indicate a strategic realignment or performance issues.

The increase in cash management assets to $64.3 billion could reflect a more cautious investor stance or temporary parking of funds. This shift might impact the company's fee structure and profitability, as cash management typically generates lower fees than long-term investment products.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today reported preliminary month-end assets under management (AUM) of $1.68 trillion at August 31, 2024 compared to $1.66 trillion at July 31, 2024. This month's increase in AUM reflected the impact of positive markets, partially offset by long-term net outflows of $6.3 billion, inclusive of $7.7 billion of long-term net outflows at Western Asset Management.¹

By Asset Class:
(In USD billions)		Preliminary
		31-Aug-24	31-Jul-24	30-Jun-24	31-Mar-24	31-Aug-23
Equity		$618.8	$603.7	$595.0	$592.7	$452.3
Fixed Income		574.5	571.3	564.5	571.4	500.2
Alternative2		251.2	254.9	254.5	255.5	256.3
Multi-Asset		172.9	171.7	168.1	163.4	149.5
Long Term:		1,617.4	1,601.6	1,582.1	1,583.0	1,358.3
Cash Management		64.3	61.5	64.5	61.7	63.1
Total		$1,681.7	$1,663.1	$1,646.6	$1,644.7	$1,421.4

1 As of August 31, 2024, Western Asset Management had AUM of $376.8 billion, compared to $376.4 billion at July 31, 2024. This month’s AUM reflected the impact of positive markets and cash management net inflows, primarily offset by the aforementioned long-term net outflows of $7.7 billion. As previously disclosed, the Macro Opportunities strategy, which is included in Alternative AUM, is closing and had $1.1 billion of AUM at August 31, 2024 and $0.9 billion of net outflows in the month.   2 Alternative AUM includes a $2 billion reduction related to a reclassification to AUA.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in equity, fixed income, alternatives, and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience. The company posts information that may be significant for investors in the Investor Relations and News Center sections of its website and encourages investors to consult those sections regularly. For more information, please visit investors.franklinresources.com.

Forward-Looking Statements

The financial results in this press release are preliminary. Some of the statements herein may include forward-looking statements that reflect our current views with respect to future events, financial performance and market conditions. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and generally can be identified by words or phrases written in the future tense and/or preceded by words such as “anticipate,” “believe,” “could,” “depends,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “potential,” “preliminary,” “seek,” “should,” “will,” “would,” or other - similar words or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that may cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements, including market and volatility risks, investment performance and reputational risks, global operational risks, competition and distribution risks, third-party risks, technology and security risks, human capital risks, cash management risks, and legal and regulatory risks. While forward-looking statements are our best prediction at the time that they are made, you should not rely on them and are cautioned against doing so. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other possible future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. They are neither statements of historical fact nor guarantees or assurances of future performance. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.

These and other risks, uncertainties and other important factors are described in more detail in our recent filings with the U.S. Securities and Exchange Commission, including, without limitation, in Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 and our subsequent Quarterly Reports on Form 10-Q. If a circumstance occurs after the date of this press release that causes any of our forward-looking statements to be inaccurate, whether as a result of new information, future developments or otherwise, we undertake no obligation to announce publicly the change to our expectations, or to make any revision to our forward-looking statements, to reflect any change in assumptions, beliefs or expectations, or any change in events, conditions or circumstances upon which any forward-looking statement is based, unless required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240911779606/en/

Franklin Resources, Inc.

Investor Relations: Selene Oh (650) 312-4091, selene.oh@franklintempleton.com

Media Relations: Jeaneen Terrio (212) 632-4005, jeaneen.terrio@franklintempleton.com

investors.franklinresources.com

Source: Franklin Resources, Inc.

FAQ

What was Franklin Resources' (BEN) total AUM as of August 31, 2024?

Franklin Resources' (BEN) total assets under management (AUM) were $1.68 trillion as of August 31, 2024.

How much were the long-term net outflows for Franklin Resources (BEN) in August 2024?

Franklin Resources (BEN) reported long-term net outflows of $6.3 billion in August 2024.

What was the AUM for Western Asset Management as of August 31, 2024?

Western Asset Management had AUM of $376.8 billion as of August 31, 2024.

How much did Franklin Resources' (BEN) Equity AUM increase from July to August 2024?

Franklin Resources' (BEN) Equity AUM increased from $603.7 billion on July 31, 2024, to $618.8 billion on August 31, 2024.

What is happening with Franklin Resources' (BEN) Macro Opportunities strategy?

Franklin Resources' (BEN) Macro Opportunities strategy is closing. It had $1.1 billion AUM and $0.9 billion net outflows in August 2024.