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

Rhea-AI Summary

Franklin Resources, also known as Franklin Templeton (NYSE: BEN), reported its preliminary month-end assets under management (AUM) for June 30, 2024, at $1.65 trillion. This marks a slight increase from $1.64 trillion on May 31, 2024. The uplift is attributed to positive market impacts and stable long-term net inflows. Over the quarter ending June 30, 2024, the AUM benefited from positive market effects but faced a net outflow of $3.2 billion, which included $5.9 billion of inflows from Great-West Lifeco in April. Detailed AUM by asset class for June 30, 2024, includes $595 billion in equities, $564.5 billion in fixed income, $254.5 billion in alternatives, and $168.1 billion in multi-asset investments. Cash management AUM stood at $64.5 billion.

Positive

• Month-end AUM increased to $1.65 trillion from $1.64 trillion.
• Positive market impacts contributed to the AUM increase.
• Equities AUM grew to $595 billion from $583.9 billion.
• Cash Management AUM grew to $64.5 billion from $64.0 billion.

Negative

• Long-term net outflows amounted to $3.2 billion for the quarter.
• AUM for alternatives decreased to $254.5 billion from $256.9 billion.
• Fixed income AUM slightly decreased to $564.5 billion from $563.6 billion.

Insights

Financial Analyst

Franklin Templeton's latest report on its assets under management (AUM) showcases a slight increase in AUM from $1.64 trillion at the end of May 2024 to $1.65 trillion at the end of June 2024. AUM is a critical indicator of the firm's performance as it reflects the overall growth in client investments and market appreciation.

One key takeaway is the contrast between the positive market impact and the net outflows. The long-term net outflows of $3.2 billion suggest that while market conditions are favorable, client withdrawals are impacting growth. This is partly balanced by notable inflows from Great-West Lifeco in April. Analyzing asset classes, the equity segment saw significant growth, up from $583.9 billion to $595.0 billion, indicating strong market performance and possibly increased investor confidence in equities.

However, the flatlining in alternative investments and the slight reduction in fixed income assets raise questions about investor sentiment in these areas. Fixed income saw a marginal decrease from $563.6 billion to $564.5 billion, showcasing investors' cautious approach towards bond markets amidst fluctuating interest rates.

For retail investors, understanding these dynamics can guide investment decisions. The positive market impact on AUM is encouraging, but the persistent outflows could signal underlying issues in investor retention strategies or shifting market preferences. It suggests a need for caution and continuous monitoring of market conditions and firm performance.

Market Research Analyst

Looking at the distribution of assets, it's clear that Franklin Templeton has a well-diversified portfolio. However, the modest increase in AUM primarily driven by market performance rather than substantial net inflows highlights a mixed sentiment among investors. The increase in equity assets from $583.9 billion to $595 billion aligns with broader market trends, where equities have been performing well due to economic resilience and investor confidence.

Yet the flat growth in alternative investments and the slight decrease in fixed income assets indicate cautiousness among investors. Alternatives remained almost static at $254.5 billion, while fixed income saw a minimal rise to $564.5 billion. This suggests a potential shift in investor preference away from traditionally safer instruments towards equities, possibly for higher returns in a bullish market phase.

For stakeholders, the overall rise in AUM is positive, but the underlying net outflows highlight a need for better client retention and understanding investor needs. Long-term stability and growth will depend on how effectively Franklin Templeton can address these challenges and capitalize on market opportunities.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today reported preliminary month-end assets under management (AUM) of $1.65 trillion at June 30, 2024, compared to $1.64 trillion at May 31, 2024. This month's increase in AUM reflected the impact of positive markets and flat long-term net inflows.

For the quarter ended June 30, 2024, AUM reflected the positive impact of markets, partially offset by long-term net outflows of $3.2 billion, including $5.9 billion of Great-West Lifeco inflows in the month of April.

By Asset Class:
(In USD billions)	Preliminary
	30-Jun-24	31-May-24	31-Mar-24	31-Dec-23	30-Jun-23
Equity	$595.0	$583.9	$592.7	$467.5	$458.0
Fixed Income	564.5	563.6	571.4	511.7	505.1
Alternative	254.5	256.9	255.5	256.2	257.2
Multi-Asset	168.1	166.9	163.4	154.6	148.3
Long Term:	1,582.1	1,571.3	1,583.0	1,390.0	1,368.6
Cash Management	64.5	64.0	61.7	65.5	62.9
Total	$1,646.6	$1,635.3	$1,644.7	$1,455.5	$1,431.5

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/20240710228469/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 June 2024?

Franklin Resources' AUM at the end of June 2024 was $1.65 trillion.

How much did Franklin Resources' AUM grow from May to June 2024?

Franklin Resources' AUM grew from $1.64 trillion at the end of May 2024 to $1.65 trillion at the end of June 2024.

What caused the increase in Franklin Resources' AUM in June 2024?

The increase in Franklin Resources' AUM in June 2024 was due to positive market impacts and flat long-term net inflows.

How much were Franklin Resources' net outflows for Q2 2024?

Franklin Resources experienced net outflows of $3.2 billion for Q2 2024.

What was the AUM for Franklin Resources' equities at the end of June 2024?

Franklin Resources' equities AUM was $595 billion at the end of June 2024.

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

Franklin Resources' alternatives AUM decreased from $256.9 billion in May to $254.5 billion in June 2024.

What is the stock symbol for Franklin Resources?

The stock symbol for Franklin Resources is BEN.