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

Rhea-AI Summary

Franklin Resources, Inc. (Franklin Templeton) reported a rise in assets under management (AUM) to $1.64 trillion at March 31, 2024, driven by positive markets and net inflows, including funds from Great-West Lifeco. The AUM increase for the quarter ended March 31, 2024, was $6.9 billion, with notable contributions from equity and fixed income classes. However, a redemption of $2.0 billion from a fixed income institutional client partially offset the gains.

Insights

Financial Analyst

The reported increase in assets under management (AUM) by Franklin Templeton signifies a positive trajectory for the firm, indicative of investor confidence and market growth. The month-over-month rise from $1.62 trillion to $1.64 trillion, although modest, is a reflection of the firm's ability to attract long-term net inflows and benefit from favorable market conditions. Particularly noteworthy is the inclusion of $8.1 billion from Great-West Lifeco, which suggests strategic partnerships or acquisitions that could enhance Franklin Templeton's market position.

Examining the asset class breakdown, the equity class saw a significant jump compared to the previous quarter, which could imply a shift in investor sentiment towards riskier assets, possibly driven by a bullish market outlook. However, the fixed income space experienced a redemption of $2.0 billion, which might highlight a need for portfolio rebalancing or a shift in investor preference due to changing interest rates or credit conditions.

For stakeholders, the short-term benefits include the potential for increased dividends and share value appreciation. In the long term, sustained growth in AUM could result in economies of scale and enhanced competitive positioning. However, the reliance on market performance and potential volatility must be noted as a risk factor.

Market Research Analyst

The data presented by Franklin Templeton offers insights into broader market trends. The increase in AUM, particularly in equities, aligns with a broader market recovery or a risk-on environment. This uptrend may encourage other investment firms to adjust their strategies to capitalize on market momentum. Moreover, the multi-asset class growth suggests a diversification trend, possibly as a hedge against volatility.

From a competitive standpoint, Franklin Templeton's performance could exert pressure on peers to demonstrate similar growth or strategic initiatives. The integration of Great-West Lifeco's assets is a strategic move that may prompt industry consolidation or partnerships as a growth strategy. It's essential to monitor how such consolidations could affect industry competition and client offerings.

Investors should consider the implications of these trends on their portfolios, particularly the potential for Franklin Templeton to leverage its increased AUM for better fund performance and innovation in product offerings.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today reported preliminary month-end assets under management (AUM) of $1.64 trillion at March 31, 2024, compared to $1.62 trillion at February 29, 2024. This month's increase in AUM reflected the impact of positive markets and long-term net inflows inclusive of $8.1 billion related to Great-West Lifeco.

For the quarter ended March 31, 2024, AUM reflected the positive impact of markets and long-term net inflows of $6.9 billion inclusive of $13.6 billion related to Great-West Lifeco, partially offset by a fixed income institutional client redemption of $2.0 billion.

By Asset Class:
(In USD billions)		Preliminary
		31-Mar-24		29-Feb-24		31-Dec-23		30-Sep-23		31-Mar-23
Equity		$592.7		$572.8		$467.5		$430.4		$437.1
Fixed Income		$571.4		564.3		511.7		483.1		510.1
Alternative		$255.5		256.4		256.2		254.9		258.2
Multi-Asset		$163.4		162.5		154.6		145.0		146.1
Long Term:		1,583.0		1,556.0		1,390.0		1,313.4		1,351.5
Cash Management		61.7		66.3		65.5		60.8		70.6
Total		$1,644.7		$1,622.3		$1,455.5		$1,374.2		$1,422.1

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 fixed income, equity, alternatives and multi-asset solutions. With more than 1,400 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/20240409747904/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, Inc.'s AUM at March 31, 2024?

Franklin Resources, Inc.'s AUM at March 31, 2024, was $1.64 trillion.

What factors contributed to the increase in AUM for Franklin Resources, Inc.?

The increase in AUM for Franklin Resources, Inc. was driven by positive markets and long-term net inflows, including funds from Great-West Lifeco.

What was the AUM for the equity asset class at March 31, 2024?

The AUM for the equity asset class at March 31, 2024, was $592.7 billion.

How much was the AUM for the fixed income asset class at March 31, 2024?

The AUM for the fixed income asset class at March 31, 2024, was $571.4 billion.

Was there any redemption noted in the AUM report for Franklin Resources, Inc.?

Yes, there was a fixed income institutional client redemption of $2.0 billion mentioned in the AUM report.