Franklin Resources, Inc. (BEN), a leading global investment management company, reported preliminary assets under management (AUM) of $1.66 trillion as of July 31, 2024. This represents a 1% increase from the previous month, driven by positive market performance. Despite this growth, long-term net outflows partially offset the gains.
Franklin’s equity assets experienced a notable increase of 1.5% from the previous month, reaching $603.7 billion. Similarly, fixed income AUM climbed 1.2% to $571.3 billion. Multi-asset AUM also saw a significant rise, increasing 2.1% to $171.7 billion from June 2024. Alternative assets also saw a slight uptick, reaching $254.9 billion. However, the cash management balance declined 4.7% from the previous month, reaching $61.5 billion.
Franklin’s strategic focus on business diversification through acquisitions, coupled with its substantial AUM balance and a strong distribution platform, positions the company favorably for continued top-line growth. Analysts project a compound annual growth rate (CAGR) of 6.5% for AUM and 4.6% for revenues by fiscal 2026. However, elevated expenses and volatility in investment management fees, which constitute the majority of Franklin’s revenue, pose potential near-term concerns.
Over the past six months, BEN’s share price has declined by 19.6%, while the industry has experienced a 2% growth. Despite these challenges, Franklin Resources maintains a Zacks Rank #3 (Hold), indicating a neutral outlook.
Other prominent asset managers also reported their preliminary AUM figures. T. Rowe Price Group, Inc. announced AUM of $1.59 trillion as of July 31, 2024, reflecting a sequential increase of 1.1%. This growth was attributed to net inflows of $2 billion during July 2024. Cohen & Steers, Inc. reported preliminary AUM of $84.6 billion as of July 31, 2024, marking a 4.8% rise from the previous month. This increase was largely driven by market appreciation, offset by net outflows and distributions.
