Franklin Resources, Inc. (BEN) has announced preliminary assets under management (AUM) of $1.68 trillion as of August 31, 2024, representing a 1.1% increase from the previous month. This growth can be attributed to positive market performance, though it was partially offset by long-term net outflows.
The company reported $7.7 billion in long-term net outflows from Western Asset Management. Additionally, the Macro Opportunities strategy, part of Alternative AUM, is closing down and had $1.1 billion in AUM as of August 31, 2024, with $0.9 billion in net outflows during the month.
Examining BEN’s AUM by asset class reveals that equity assets reached $603.7 billion, a 2.5% increase from the previous month. Fixed income AUM also saw a modest rise, reaching $574.5 billion by the end of August 2024. Multi-asset AUM grew slightly to $172.9 billion from July 2024. Conversely, Alternative AUM experienced a 1.5% decline to $251.2 billion, partially due to a $2 billion reduction related to asset reclassification. Cash management balance saw a 4.6% increase to $64.35 billion from the previous month.
Franklin’s diversification efforts through acquisitions, its robust AUM balance, and strong distribution platform are expected to bolster its top line. However, elevated expenses and volatility in investment management fees, which represent the majority of its revenues, pose concerns in the near term. Shares of BEN have experienced a decline of 11.5% over the past three months, contrasting with the industry’s 3.8% rise.
In the wider asset management landscape, Cohen & Steers, Inc. (CNS) reported preliminary AUM of $88.1 billion as of August 31, 2024, a 4.1% increase from the previous month. This growth was driven by $3.7 billion in market appreciation and $8 billion in net inflows, partially offset by distributions of $152 million.
Invesco (IVZ) reported preliminary month-end AUM of $1.75 trillion in August 2024, representing a 1.1% increase from the previous month. The company recorded $2.4 billion in net long-term inflows during August, with $0.9 billion in non-management fee-earning net inflows and $6.4 billion in money market net outflows. Solid market returns contributed positively to Invesco’s AUM, boosting it by $16 billion, while FX added $7.3 billion to the AUM balance.
