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

Rhea-AI Summary

Franklin Resources, known as Franklin Templeton, reported a preliminary month-end assets under management (AUM) of $1.64 trillion at May 31, 2024. This marks an increase from $1.60 trillion at April 30, 2024. The rise in AUM is attributed to positive market impacts, despite modest long-term net outflows.

By asset class, the AUM figures are as follows (in USD billions): Equity at $583.9, Fixed Income at $563.6, Alternative at $256.9, and Multi-Asset at $166.9. The total long-term AUM is $1.571 trillion, while Cash Management accounts for $64 billion. Comparatively, the total AUM was $1.455 trillion at December 31, 2023, and $1.404 trillion at May 31, 2023.

Positive

• Increase in AUM from $1.60 trillion to $1.64 trillion within a month.
• Positive market impacts contributed to the rise in AUM.
• Equity AUM increased from $564.4 billion to $583.9 billion in a month.
• Fixed Income AUM grew from $559.6 billion to $563.6 billion.
• Overall improvement in Multi-Asset AUM from $162.6 billion to $166.9 billion.

Negative

• Modest long-term net outflows despite the increase in overall AUM.
• Alternative AUM remained flat at $256.9 billion compared to the previous month.
• Total AUM in March 2024 was higher at $1.644 trillion compared to May 2024's $1.635 trillion.

Insights

Financial Analyst

The recent update on Franklin Resources, Inc.'s assets under management (AUM) provides important insights into the company's financial health and market performance. The AUM rose from $1.60 trillion at the end of April to $1.64 trillion by the end of May 2024. This increase is largely attributed to positive market conditions, although tempered by modest long-term net outflows. The rise in AUM is significant, indicating potential recovery or growth in the markets and effective asset management from Franklin Templeton.

The breakdown by asset class reveals interesting trends. Equity AUM saw a notable increase from $564.4 billion in April to $583.9 billion in May, suggesting a favorable market performance for equities. Fixed Income also went up slightly from $559.6 billion to $563.6 billion. However, the Alternative and Multi-Asset classes remained relatively stable, showing minimal changes.

For retail investors, the key takeaway is that Franklin Templeton seems to be managing its assets effectively within positive market conditions. However, the modest long-term net outflows indicate there might be underlying concerns or shifts in investor sentiment. It's important to monitor whether this trend continues or reverses in the upcoming months.

From a financial perspective, the short-term benefit is the evident growth in AUM, which can positively impact the company's revenue through management fees. Long-term implications will depend on whether Franklin Templeton can sustain or improve its net inflow rates and continue capitalizing on positive market conditions.

Market Research Analyst

This report from Franklin Templeton sheds light on broader market trends and investor behaviors. The increase in the AUM by $40 billion month-over-month signals strong market performance that is favorably impacting large asset managers. The equity market's performance, as evidenced by a jump in equity AUM from $564.4 billion to $583.9 billion, suggests a bullish trend that investors seem to be capitalizing on.

However, the mention of 'modest long-term net outflows' should make investors cautious. It could indicate that while short-term gains are evident, some investors may be moving their capital elsewhere, possibly seeking higher returns or lesser risks. This trend is vital to understanding the market's current risk appetite and investment strategies.

For retail investors, understanding these nuances can help shape their portfolio strategies. They might consider whether their investments align with broader market movements or if diversification into other asset classes could mitigate potential risks indicated by the net outflows.

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 May 31, 2024, compared to $1.60 trillion at April 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-May-24	30-Apr-24	31-Mar-24	31-Dec-23	31-May-23
Equity	$583.9	$564.4	$592.7	$467.5	$434.5
Fixed Income	563.6	559.6	571.4	511.7	502.8
Alternative	256.9	255.0	255.5	256.2	256.9
Multi-Asset	166.9	162.6	163.4	154.6	144.0
Long Term:	1,571.3	1,541.6	1,583.0	1,390.0	1,338.2
Cash Management	64.0	62.2	61.7	65.5	66.0
Total	$1,635.3	$1,603.8	$1,644.7	$1,455.5	$1,404.2

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/20240611002048/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' AUM at the end of May 2024?

Franklin Resources reported a preliminary AUM of $1.64 trillion at the end of May 2024.

How did Franklin Resources' AUM change from April to May 2024?

Franklin Resources' AUM increased from $1.60 trillion in April 2024 to $1.64 trillion in May 2024.

What factors contributed to the increase in Franklin Resources' AUM in May 2024?

The increase in AUM was due to positive market impacts, partially offset by modest long-term net outflows.

What is the ticker symbol for Franklin Resources?

The ticker symbol for Franklin Resources is BEN.

How did the AUM for Equity and Fixed Income assets change from April to May 2024 at Franklin Resources?

Equity AUM increased from $564.4 billion to $583.9 billion, and Fixed Income AUM grew from $559.6 billion to $563.6 billion.