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

Rhea-AI Summary

Franklin Resources, Inc. (NYSE: BEN) reported preliminary month-end assets under management (AUM) of $1.68 trillion at September 30, 2024, unchanged from August 31, 2024. The company experienced long-term net outflows of $22.4 billion, including $27.9 billion from Western Asset Management, partially offset by positive market impact. For the quarter ended September 30, 2024, AUM benefited from positive markets but was affected by long-term net outflows of $31.3 billion, including $37.0 billion from Western Asset Management.

The AUM breakdown by asset class as of September 30, 2024, was: Equity ($632.1 billion), Fixed Income ($556.4 billion), Alternative ($249.9 billion), Multi-Asset ($176.2 billion), and Cash Management ($64.0 billion). Western Asset Management's AUM decreased from $376.8 billion to $353.3 billion, reflecting significant outflows and market impacts.

Positive

• Total AUM remained stable at $1.68 trillion month-over-month
• Positive market impact partially offset net outflows
• Equity AUM increased from $618.8 billion to $632.1 billion
• Multi-Asset AUM rose from $172.9 billion to $176.2 billion

Negative

• Long-term net outflows of $22.4 billion for the month
• Quarterly long-term net outflows of $31.3 billion
• Western Asset Management experienced $27.9 billion in monthly net outflows
• Fixed Income AUM decreased from $574.5 billion to $556.4 billion
• Alternative AUM slightly decreased from $251.2 billion to $249.9 billion
• Macro Opportunities strategy closing with $0.5 billion net outflows in the month

Insights

Financial Analyst

Franklin Resources' latest AUM report reveals a stagnant total AUM of $1.68 trillion as of September 30, 2024, unchanged from the previous month. The company faced significant challenges, particularly with long-term net outflows of $22.4 billion, largely attributed to Western Asset Management's $27.9 billion outflows. This trend is concerning, especially when compared to the previous quarter's net outflows of $31.3 billion.

The equity segment showed resilience, increasing from $618.8 billion to $632.1 billion, likely due to positive market performance. However, the fixed income segment experienced a notable decline from $574.5 billion to $556.4 billion, reflecting ongoing challenges in the bond market and potential investor concerns.

The closure of the Macro Opportunities strategy within the Alternative AUM segment, while relatively small at $0.6 billion, signals potential restructuring or strategic shifts. Investors should monitor Franklin Resources' ability to stem outflows and capitalize on market gains to maintain its competitive position in the asset management industry.

Market Research Analyst

Franklin Resources' AUM report highlights a mixed performance across asset classes. The 2.15% increase in equity AUM suggests potential market gains or successful equity strategies. However, the 3.15% decrease in fixed income AUM is concerning, possibly reflecting broader market trends or specific challenges in Franklin's fixed income offerings.

The alternative and multi-asset segments show relative stability, with slight changes month-over-month. This diversification may help buffer against volatility in other asset classes. The consistent cash management AUM around $64 billion indicates a stable liquidity position.

Year-over-year comparison shows significant growth, with total AUM increasing from $1.37 trillion to $1.68 trillion, a 22.15% jump. This growth, likely boosted by acquisitions or market performance, contrasts with the current outflow challenges. The company's ability to integrate acquisitions and retain assets will be important for maintaining this expanded AUM base and reversing the outflow trend.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today reported preliminary month-end assets under management (AUM) of $1.68 trillion at September 30, 2024, compared to $1.68 trillion at August 31, 2024. Long-term net outflows of $22.4 billion, inclusive of $27.9 billion of long-term net outflows at Western Asset Management,¹ were partially offset by the impact of positive markets.

For the quarter ended September 30, 2024, AUM reflected the positive impact of markets, partially offset by long-term net outflows of $31.3 billion, inclusive of $37.0 billion of long-term net outflows at Western Asset Management.¹

By Asset Class:
(In USD billions)	Preliminary
	30-Sep-24	31-Aug-24	30-Jun-24	31-Mar-24	30-Sep-23
Equity	$632.1	$618.8	$595.0	$592.7	$430.4
Fixed Income	556.4	574.5	564.5	571.4	483.1
Alternative2	249.9	251.2	254.5	255.5	254.9
Multi-Asset	176.2	172.9	168.1	163.4	145.0
Long Term:	1,614.6	1,617.4	1,582.1	1,583.0	1,313.4
Cash Management	64.0	64.3	64.5	61.7	60.8
Total Ending AUM	$1,678.6	$1,681.7	$1,646.6	$1,644.7	$1,374.2

¹ As of September 30, 2024, Western Asset Management had AUM of $353.3 billion, compared to $376.8 billion at August 31, 2024. This month’s AUM reflected the aforementioned long-term net outflows of $27.9 billion and cash management net outflows of $0.5 billion, partially offset by the impact of positive markets. As previously disclosed, the Macro Opportunities strategy, which is included in Alternative AUM, is closing and had $0.6 billion of AUM at September 30, 2024, $0.5 billion of net outflows in the month, and $1.5 billion of net outflows in the quarter.

² The quarter ended September 30, 2024 includes aggregate realizations and distributions of $2.8 billion and the previously disclosed $2 billion reclassification to AUA in August.

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/20241009092967/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 September 30, 2024?

Franklin Resources' (BEN) total assets under management (AUM) as of September 30, 2024, were $1.68 trillion.

How much were the long-term net outflows for Franklin Resources (BEN) in September 2024?

Franklin Resources (BEN) reported long-term net outflows of $22.4 billion for September 2024.

What was the AUM for Western Asset Management, part of Franklin Resources (BEN), as of September 30, 2024?

Western Asset Management, part of Franklin Resources (BEN), had AUM of $353.3 billion as of September 30, 2024.

How did Franklin Resources' (BEN) equity AUM change from August to September 2024?

Franklin Resources' (BEN) equity AUM increased from $618.8 billion on August 31, 2024, to $632.1 billion on September 30, 2024.