Franklin Resources Inc. (BEN) declared preliminary assets under management (“AUM”) of $871.6 billion by its subsidiaries for Jan 2015. The company’s results exhibited a marginal decline from $880.1 billion as of Dec 31, 2014. However, the figure increased 1.7% from $857.2 billion as of Jan 31, 2014.
Month-end total equity assets came in at $356.2 billion for Franklin, down 1.5% from the prior month, while rising marginally on a year-over-year basis. Of the total equity assets, around 69% were sourced internationally, whereas the remaining 31% came from the U.S.
Total fixed income assets were $352.7 billion, declining from $354.5 billion in the prior month; while increasing modestly from $351.1 billion in the year-ago month. Overall, tax-free assets accounted for only 21% of the fixed income assets, while the remaining 79% were taxable.
Franklin recorded $155.4 billion in hybrid assets, which inched down 1.1% from $157.1 billion in the prior month and jumped 6% from $146.6 billion in the prior-year month.
Cash management funds totaled $7.3 billion, up from $6.9 billion in the prior month, and up 14.1% from $6.4 billion as of Jan 31, 2014.
Our Viewpoint
Franklin's global footprint is an exceptionally favorable strategic point, given its well diversified AUM. However, the AUM growth remains challenged by the prevalent economic weakness and stringent regulations. Nevertheless, Franklin is well poised to benefit from its strong balance sheet position.
Currently, Franklin carries a Zacks Rank #3 (Hold).
Among other investment managers, Pzena Investment Management, Inc (PZN) reported preliminary AUM of $26.2 billion for Jan 2015. The month-end AUM declined 5.4% sequentially, but increased 10.5% on a linked-quarter basis.
Two better-ranked investment managers are Affiliated Managers Group Inc. (AMG) and Woori Bank Co., Ltd. (WF), each sporting a Zacks Rank #1 (Strong Buy).
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