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

Rhea-AI Summary

Franklin Resources, Inc. reported a decrease in month-end assets under management (AUM) to $1.60 trillion at April 30, 2024, compared to $1.64 trillion at March 31, 2024. The decline was due to negative markets and net outflows, including funds from Great-West Lifeco.

Positive

• None.

Negative

• Decrease in assets under management (AUM) from $1.64 trillion in March to $1.60 trillion in April 2024

• Negative impact of markets and net outflows on AUM

• Outflows inclusive of $5.9 billion related to Great-West Lifeco

Insights

Financial Analyst

Franklin Resources, Inc.'s report of a decrease in assets under management (AUM) from $1.64 trillion to $1.60 trillion reflects a contraction that may concern investors. A key detail is the $5.9 billion outflow related to Great-West Lifeco, which, despite being a one-off event, could impact investor sentiment. The equity class experienced a notable shrinkage, which investors should watch closely as it might indicate a trend or reaction to broader market conditions. Fixed income and alternatives remained relatively stable, signaling potential resilience in these asset classes. The decrease in AUM should be evaluated against industry benchmarks and market trends to fully understand its implications. Investors could assess the company's management strategies and historical performance during market downturns when considering the company's potential for recovery and growth.

Market Research Analyst

The reported AUM figures show a month-to-month decline; however, a 2.5% drop is not necessarily indicative of a long-term trend. It is essential to consider the broader economic context, including market volatility and interest rates, which may have affected investors' behavior. The multi-asset class remains comparatively stable, suggesting a sustained interest in diversified investment strategies. Notably, the cash management segment showed an uptick, which could be interpreted as a move towards liquidity, a common reaction during uncertain market periods. Investors might want to keep an eye on subsequent reports to determine if this is a brief dip or the onset of a pattern.

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 April 30, 2024, compared to $1.64 trillion at March 31, 2024. This month's decrease in AUM reflected the impact of negative markets and slight long-term net outflows inclusive of $5.9 billion related to the $25 billion from Great-West Lifeco.

By Asset Class:
(In USD billions)	Preliminary
	30-Apr-24	31-Mar-24	31-Dec-23	30-Sep-23	30-Apr-23
Equity	$564.4	$592.7	$467.5	$430.4	$441.6
Fixed Income	559.6	571.4	511.7	483.1	510.4
Alternative	255.0	255.5	256.2	254.9	257.8
Multi-Asset	162.6	163.4	154.6	145.0	146.8
Long Term:	1,541.6	1,583.0	1,390.0	1,313.4	1,356.6
Cash Management	62.2	61.7	65.5	60.8	64.1
Total	$1,603.8	$1,644.7	$1,455.5	$1,374.2	$1,420.7

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/20240509701711/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 were Franklin Resources, Inc.'s month-end assets under management (AUM) at April 30, 2024?

Franklin Resources, Inc.'s month-end assets under management (AUM) were $1.60 trillion at April 30, 2024.

What caused the decrease in Franklin Resources, Inc.'s AUM?

The decrease in AUM was due to negative markets and net outflows, including funds from Great-West Lifeco.

How does the AUM at April 30, 2024, compare to March 31, 2024?

The AUM at April 30, 2024, was lower at $1.60 trillion compared to $1.64 trillion at March 31, 2024.