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

Rhea-AI Summary

Franklin Resources (NYSE: BEN) reported preliminary month-end assets under management (AUM) of $1.63 trillion at October 31, 2024, down from $1.68 trillion in September 2024. The decrease was attributed to negative markets and long-term net outflows of $18.5 billion, including $17.8 billion from Western Asset Management. By asset class, Equity stood at $618.2B, Fixed Income at $524.6B, Alternative at $247.9B, Multi-Asset at $174.4B, and Cash Management at $65.6B. Western Asset Management's AUM decreased to $328.3B from $353.3B in September.

Positive

• Cash Management assets increased to $65.6B from $64.0B in September
• Year-over-year total AUM increased from $1.33T to $1.63T

Negative

• Monthly AUM decreased by $47.9B to $1.63T from $1.68T
• Significant long-term net outflows of $18.5B in October
• Western Asset Management experienced substantial outflows of $17.8B
• Fixed Income AUM declined by $31.8B to $524.6B from $556.4B
• Equity AUM decreased by $13.9B to $618.2B from $632.1B

Insights

Financial Analyst

The $1.63 trillion AUM report reveals concerning trends for Franklin Resources. A significant $18.5 billion in long-term net outflows, primarily from Western Asset Management ($17.8 billion), coupled with market headwinds, led to a $47.9 billion month-over-month AUM decline. Western Asset's AUM dropped by $25 billion, raising red flags about client retention.

The fixed income segment saw the largest decline, down $31.8 billion from September, while equity AUM fell by $13.9 billion. Despite year-over-year growth in total AUM, the accelerating outflows and market sensitivity suggest potential pressure on future fee revenue and earnings. The closure of Macro Opportunities funds, though small, adds to the negative momentum in asset retention.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today reported preliminary month-end assets under management (AUM) of $1.63 trillion at October 31, 2024, compared to $1.68 trillion at September 30, 2024. This month's decrease in AUM reflected the impact of negative markets and long-term net outflows of $18.5 billion, inclusive of the previously disclosed $17.8 billion of long-term net outflows at Western Asset Management¹.

By Asset Class:
(In USD billions)	Preliminary
	31-Oct-24		30-Sep-24		30-Jun-24		31-Mar-24		31-Oct-23
Equity	$	618.2	$	632.1	$	595.0	$	592.7	$	410.9
Fixed Income		524.6		556.4		564.5		571.4		468.9
Alternative2		247.9		249.9		254.5		255.5		253.8
Multi-Asset		174.4		176.2		168.1		163.4		140.8
Long Term:		1,565.1		1,614.6		1,582.1		1,583.0		1,274.4
Cash Management		65.6		64.0		64.5		61.7		60.1
Total Ending AUM	$	1,630.7	$	1,678.6	$	1,646.6	$	1,644.7	$	1,334.5

1		As of October 31, 2024, Western Asset Management had AUM of $328.3 billion, compared to $353.3 billion at September 30, 2024. This month’s AUM reflected the impact of negative markets, the aforementioned long-term net outflows of $17.8 billion, and cash management net inflows of $1.7 billion. The Macro Opportunities funds with combined AUM of $0.3 billion closed on October 29, 2024.
2		Alternative AUM includes $0.3 billion of realizations related to the previously disclosed closure of the Macro Opportunities funds.

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/20241111310858/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 October 31, 2024?

Franklin Resources reported total assets under management of $1.63 trillion as of October 31, 2024.

How much were the net outflows for Franklin Resources (BEN) in October 2024?

Franklin Resources experienced long-term net outflows of $18.5 billion in October 2024, including $17.8 billion from Western Asset Management.

What was the month-over-month change in Franklin Resources (BEN) AUM from September to October 2024?

Franklin Resources' AUM decreased from $1.68 trillion in September 2024 to $1.63 trillion in October 2024.

How did Franklin Resources (BEN) Fixed Income AUM change in October 2024?

Fixed Income AUM decreased from $556.4 billion in September to $524.6 billion in October 2024.