Franklin Resources' (BEN) November AUM Down On Net Outflows

Franklin Resources (NYSE:BEN) has announced preliminary assets under management (AUM) by its subsidiaries of $691.3 billion for November 2019. Results display marginal decrease from the $693.1 billion recorded as of Oct 31, 2019. Net outflows were partly offset by net market gains. Further, the reported figure inched up 1.2% year on year.

Month-end total equity assets came in at $274.5 billion, up around 1% from the previous month but down 4.1% year over year. Of the total equity assets, around 58% were from international sources, while the remaining 42% came in from the United States.

Total fixed income assets were $272 billion, down around 1.5% from October 2019 but up 6.4% from the prior year. Overall, tax-free assets accounted for only 24% of the fixed-income assets, while the remaining 76% was taxable.

Franklin recorded $134.6 billion in hybrid assets, slightly down from the $134.9 billion witnessed in the previous month but up 1.8% from the $132.2 billion reported in November 2018.

Cash-management funds came in at $10.2 billion, up from the prior-month figure of $10 billion and $9.3 billion recorded in the previous year.

Though regulatory restrictions and sluggish economic recovery might mar AUM growth, and escalate costs, the company’s global footprint is a favorable strategic point as its AUM is well diversified.

Currently, Franklin carries a Zacks Rank #3 (Hold). Shares of the company have lost around 8.9% year to date as against 9.8% growth recorded by the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other asset managers, Invesco Ltd. (NYSE:IVZ) , T. Rowe Price Group, Inc. (NASDAQ:TROW) and Legg Mason Inc. (NYSE:LM) are expected to release preliminary AUM results for November, later this week.

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