Franklin Resources Inc. (BEN) declared preliminary assets under management (AUM) of $886.9 billion by its subsidiaries for Mar 2014. The company’s results exhibited a marginal rise of 0.5% from $882.2 billion as of Feb 28, 2014. Moreover, it surged 7.7% from $823.7 billion as of Mar 31, 2013.
Month-end total equity assets came in at $372.9 billion for Franklin, up 0.6% from the prior month and 16.6% on a year-over-year basis. Of the total equity assets, around 70% were from international sources, while the remaining 30% were from the U.S.
Total fixed income assets were $353.7 billion, almost in line with the prior month, while down 4.2% from $369.2 billion as of Mar 31, 2013. Overall, tax-free assets accounted for only 20% of the fixed income assets, while the remaining 80% were taxable.
Franklin recorded $154.0 billion in hybrid assets, which jumped 1.8% from $151.3 billion in the prior month and 19.2% from $129.2 billion in the prior-year month.
Cash management funds were reported at $6.3 billion, down from $6.4 billion in the prior month but up from $5.4 billion in the prior-year month.
Quarterly Performance
On a quarterly basis, as of Dec 31, 2013, total AUM was $879.1 billion, up from $781.8 billion as of Dec 31, 2012, driven by market appreciation of $77.3 billion and $24.0 billion of net new flows. Simple monthly average AUM of $865.9 billion during the quarter climbed 13% year over year.
Among other asset managers, Invesco Ltd. (IVZ) and Legg Mason Inc. (LM) are expected to release preliminary AUM for Mar 2014 later this week.
Our Viewpoint
Franklin's global footprint is a favorable strategic point as its AUM is well diversified. The company is also poised to benefit from its strong balance sheet. However, regulatory restrictions and sluggish economic growth could mar AUM improvement and alleviate costs.
Franklin currently carries a Zacks Rank #3 (Hold). However, a better performing company in the same industry with a Zacks Rank #1 (Strong Buy) is Lazard Ltd. (LAZ).
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