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Franklin's (BEN) May AUM Benefits From Positive Markets
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Franklin Resources, Inc. (BEN - Free Report) reported its preliminary assets under management (AUM) of $1.64 trillion as of May 31, 2024. This reflected an increase of 2% from the prior month’s level.
The improvement in AUM balance was primarily due to the impact of positive markets, partially offset by long-term net outflows.
BEN recorded equity assets of $583.9 billion, which increased 3.5% from the previous month. Further, fixed income AUM of $563.6 billion at the end of May 2024 increased nearly 1% from the previous month. Multi-asset AUM was $166.9 billion, which rose 2.6% from May 2024. Also, alternative assets increased nearly 1% to $256.9 from the prior month’s level.
Furthermore, the cash management balance was $64 billion, up 2.9% from the previous month’s level.
Franklin’s efforts to grow inorganically and diversify its business are expected to support its financials. Also, a strong AUM balance will continue to support top-line growth. We project AUM and revenues to witness a compound annual growth rate of 11.8% and 3.6% by fiscal 2026, respectively. However, elevated expenses and volatility in investment management fees, which bring in the majority of its revenues, are near-term concerns.
Over the past six months, shares of BEN have plunged 18.7% against the industry’s 11.6% growth.
Virtus Investment Partners, Inc. (VRTS - Free Report) recorded a sequential increase of 1.9% in its preliminary AUM balance for May 2024. VRTS reported a month-end AUM of $173.3 billion, indicating a rise from the Apr 31, 2024, level of $170.1 billion. The company offered services to $2.6 billion of other fee-earning assets. This was excluded from the above-mentioned AUM balance.
Cohen & Steers, Inc. (CNS - Free Report) reported a preliminary AUM of $80.5 billion as of May 31, 2024. This reflected growth of 4.3% from the prior month's level. The increase in CNS’s AUM balance was mainly attributable to a market appreciation of $3.6 billion. This was partly offset by net outflows of $93 million and distributions of $150 million.
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Franklin's (BEN) May AUM Benefits From Positive Markets
Franklin Resources, Inc. (BEN - Free Report) reported its preliminary assets under management (AUM) of $1.64 trillion as of May 31, 2024. This reflected an increase of 2% from the prior month’s level.
The improvement in AUM balance was primarily due to the impact of positive markets, partially offset by long-term net outflows.
BEN recorded equity assets of $583.9 billion, which increased 3.5% from the previous month. Further, fixed income AUM of $563.6 billion at the end of May 2024 increased nearly 1% from the previous month. Multi-asset AUM was $166.9 billion, which rose 2.6% from May 2024. Also, alternative assets increased nearly 1% to $256.9 from the prior month’s level.
Furthermore, the cash management balance was $64 billion, up 2.9% from the previous month’s level.
Franklin’s efforts to grow inorganically and diversify its business are expected to support its financials. Also, a strong AUM balance will continue to support top-line growth. We project AUM and revenues to witness a compound annual growth rate of 11.8% and 3.6% by fiscal 2026, respectively. However, elevated expenses and volatility in investment management fees, which bring in the majority of its revenues, are near-term concerns.
Over the past six months, shares of BEN have plunged 18.7% against the industry’s 11.6% growth.
Image Source: Zacks Investment Research
Currently, BEN carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
Virtus Investment Partners, Inc. (VRTS - Free Report) recorded a sequential increase of 1.9% in its preliminary AUM balance for May 2024. VRTS reported a month-end AUM of $173.3 billion, indicating a rise from the Apr 31, 2024, level of $170.1 billion. The company offered services to $2.6 billion of other fee-earning assets. This was excluded from the above-mentioned AUM balance.
Cohen & Steers, Inc. (CNS - Free Report) reported a preliminary AUM of $80.5 billion as of May 31, 2024. This reflected growth of 4.3% from the prior month's level. The increase in CNS’s AUM balance was mainly attributable to a market appreciation of $3.6 billion. This was partly offset by net outflows of $93 million and distributions of $150 million.