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

Rhea-AI Summary

Franklin Resources, Inc. (Franklin Templeton) reported a growth in assets under management (AUM) to $1.60 trillion in January 2024 from $1.46 trillion in December 2023. The increase was due to acquiring Putnam Investments, despite some net outflows. Fixed Income and Equity classes saw significant increases.

Insights

Financial Analyst

The reported increase in assets under management (AUM) by Franklin Templeton signifies a notable expansion for the company, particularly through the strategic acquisition of Putnam Investments. This move not only enhances the company's market position but also diversifies its portfolio offerings. The acquisition's contribution to the AUM is substantial, considering Putnam's $148 billion AUM as of December 31, 2023, which is reflective of the reported month-end AUM growth from $1.46 trillion to $1.60 trillion.

From an investment perspective, the growth in equity AUM from $467.5 billion to $550.9 billion suggests a positive market trend or effective asset management, potentially leading to increased investor confidence. However, the slight long-term net outflows indicate some level of redemption pressures or shifts in investor preferences. Monitoring subsequent reports for trends in outflows will be crucial in evaluating the long-term stability of the AUM growth.

Market Research Analyst

Franklin Templeton's AUM growth is a reflection of broader market dynamics and the company's competitive strategy. The acquisition of Putnam Investments, a significant move in the asset management industry, could lead to synergies that enhance product offerings and operational efficiencies. This strategic decision may provide Franklin Templeton with a competitive edge, potentially attracting more institutional and retail investors.

Additionally, the distribution of AUM across various asset classes, including fixed income, equity, alternative, multi-asset and cash management, indicates a balanced approach to asset allocation. This diversification is beneficial for risk management and can appeal to a broad range of investors with varying risk appetites. The ability to maintain and grow AUM across multiple asset classes is indicative of robust investment management capabilities.

Economist

The report of Franklin Templeton's AUM growth can be seen as a microcosm of the economic environment during the period. An increase in AUM, particularly in the equity class, may signal investor optimism or a bullish market. Conversely, the slight long-term net outflows might suggest some underlying economic concerns or market volatility that could be worth investigating further.

It is also important to consider the macroeconomic factors that could influence asset management performance, such as interest rate trends, inflation rates and global economic events. These factors can affect investor behavior and the valuation of asset classes, which in turn impact AUM. Understanding these economic indicators can provide additional context to the AUM figures reported by Franklin Templeton and the asset management industry as a whole.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today reported preliminary month-end assets under management (AUM) of $1.60 trillion at January 31, 2024, compared to $1.46 trillion at December 31, 2023. This month’s increase in AUM reflected the acquisition of Putnam Investments¹, partially offset by slight long-term net outflows.

By Asset Class:
(In USD billions)		Preliminary
		31-Jan-24		31-Dec-23		30-Sep-23		30-Jun-23		31-Jan-23
Fixed Income		$565.9		$511.7		$483.1		$505.1		$512.1
Equity		550.9		467.5		430.4		458.0		445.5
Alternative		256.4		256.2		254.9		257.2		257.9
Multi-Asset		160.6		154.6		145.0		148.3		147.2
Long Term:		1,533.8		1,390.0		1,313.4		1,368.6		1,362.7
Cash Management		68.1		65.5		60.8		62.9		89.2
Total		$1,601.9		$1,455.5		$1,374.2		$1,431.5		$1,451.9

1 On January 1, 2024, Franklin Templeton completed the acquisition of Putnam Investments. Putnam had total AUM of $148 billion as of December 31, 2023.

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 1,300 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/20240209849571/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 Templeton's AUM in January 2024?

Franklin Templeton reported an AUM of $1.60 trillion in January 2024.

What caused the increase in AUM in January 2024?

The increase in AUM was due to the acquisition of Putnam Investments.

Which asset classes saw significant increases in AUM?

Fixed Income and Equity classes saw significant increases in AUM.

When did Franklin Templeton acquire Putnam Investments?

Franklin Templeton completed the acquisition of Putnam Investments on January 1, 2024.

What was Putnam Investments' total AUM as of December 31, 2023?

Putnam Investments had total AUM of $148 billion as of December 31, 2023.