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 $1.66 trillion at July 31, 2024, a slight increase from $1.65 trillion at June 30, 2024. The growth was attributed to positive market impact, partially offset by modest long-term net outflows. The company's AUM breakdown shows:

• Equity: $603.7 billion
• Fixed Income: $571.3 billion
• Alternative: $254.9 billion
• Multi-Asset: $171.7 billion
• Cash Management: $61.5 billion

Notably, the total AUM has grown significantly from $1.45 trillion in July 2023, with substantial increases in equity and fixed income assets.

Positive

• Total AUM increased to $1.66 trillion, up from $1.65 trillion the previous month
• Year-over-year AUM growth from $1.45 trillion in July 2023 to $1.66 trillion in July 2024
• Equity assets increased to $603.7 billion from $595.0 billion in the previous month
• Fixed Income assets rose to $571.3 billion from $564.5 billion in June 2024

Negative

• Modest long-term net outflows reported
• Cash Management assets decreased to $61.5 billion from $64.5 billion in the previous month

Insights

Financial Analyst

Franklin Resources' latest AUM report reveals a modest increase to $1.66 trillion, up 0.6% from June. This growth, primarily driven by positive market performance, was partially offset by slight long-term net outflows. The equity segment saw the most significant gain, rising by $8.7 billion or 1.46%, indicating improved investor sentiment in stock markets. However, the cash management segment decreased by $3 billion, suggesting a shift towards higher-risk assets. The year-over-year comparison shows substantial growth across all asset classes, with total AUM up by 14.77% since July 2023, reflecting strong market performance and possibly successful acquisition strategies.

Market Research Analyst

The AUM increase, while positive, masks some underlying concerns. The reported "modest long-term net outflows" suggest ongoing challenges in retaining investor capital, particularly in a bullish market environment where AUM should naturally increase. The fixed income segment's growth (1.2% month-over-month) lags behind equity, potentially indicating investor caution about interest rate trends. The alternative assets category shows minimal growth (0.16%), which could be a missed opportunity given the current market's appetite for diversification. Franklin Resources needs to address these outflows and capitalize on growing segments to maintain its competitive edge in the asset management industry.

 

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today reported preliminary month-end assets under management (AUM) of $1.66 trillion at July 31, 2024, compared to $1.65 trillion at June 30, 2024. This month's increase in AUM reflected the impact of positive markets partially offset by modest long-term net outflows.

By Asset Class:
(In USD billions)		Preliminary
		31-Jul-24		30-Jun-24		31-Mar-24		31-Dec-23		31-Jul-23
Equity		$603.7		$595.0		$592.7		$467.5		$468.3
Fixed Income		571.3		564.5		571.4		511.7		508.8
Alternative		254.9		254.5		255.5		256.2		257.5
Multi-Asset		171.7		168.1		163.4		154.6		152.4
Long Term:		1,601.6		1,582.1		1,583.0		1,390.0		1,387.0
Cash Management		61.5		64.5		61.7		65.5		62.1
Total		$1,663.1		$1,646.6		$1,644.7		$1,455.5		$1,449.1

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/20240812851868/en/

Franklin Resources, Inc.

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

Media Relations: Matt Walsh (650) 312-2245, matthew.walsh@franklintempleton.com

investors.franklinresources.com

Source: Franklin Resources, Inc.

FAQ

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

Franklin Resources reported preliminary month-end assets under management (AUM) of $1.66 trillion as of July 31, 2024.

How did Franklin Resources' (BEN) AUM change from June to July 2024?

Franklin Resources' AUM increased from $1.65 trillion on June 30, 2024, to $1.66 trillion on July 31, 2024, reflecting positive market impact partially offset by modest long-term net outflows.

What was the largest asset class in Franklin Resources' (BEN) portfolio as of July 31, 2024?

As of July 31, 2024, the largest asset class in Franklin Resources' portfolio was Equity, with $603.7 billion in AUM.

How has Franklin Resources' (BEN) AUM changed year-over-year from July 2023 to July 2024?

Franklin Resources' AUM grew from $1.45 trillion in July 2023 to $1.66 trillion in July 2024, representing a significant year-over-year increase.