Franklin Resources Inc. BEN declared preliminary assets under management (AUM) of $790 billion by its subsidiaries for November 2015. The company’s results exhibited a 2% fall from $801.1 billion as of Oct 31, 2015. Moreover, it declined 13% from $899.5 billion as of Nov 30, 2014.
Month-end total equity assets came in at $324.6 billion for Franklin, down 2% from the prior month while it decreased 13% on a year-over-year basis. Of the total equity assets, around 68% were from international sources, while the remaining 32% were from the U.S.
Total fixed income assets were $319.2 billion, down 1% from the prior month and 12% from $362.9 billion as of Nov 30, 2014. Overall, tax-free assets accounted for only 23% of the fixed income assets, while the remaining 77% were taxable.
Franklin recorded $139.6 billion in hybrid assets, which declined 4% from $144.4 billion in the prior month and 13% from $159.8 billion in the prior-year month.
Cash management funds were reported at $6.6 billion, down from $6.9 billion in the prior month and $7.0 billion in the prior-year month.
Our Viewpoint
Though the company’s global footprint is an exceptionally favorable strategic point as its AUM is well diversified, regulatory restrictions and sluggish economic recovery could mar AUM growth further and increase costs. Moreover, Franklin is subject to numerous regulations by U.S. and non-U.S. regulators that add further complexity to ongoing global compliance operations and thereby can hurt profitability.
Franklin currently carries a Zacks Rank #3 (Hold). However, a better performing company in the same industry with a Zacks Rank #2 (Buy) is Woori Bank Co., Ltd. WF.
Among other asset managers, Legg Mason Inc. LM and Invesco Ltd. IVZ are expected to release preliminary AUM for November 2015 later this week.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment