Franklin Resources (BEN, Financial) announced that its preliminary assets under management (AUM) declined slightly to $1.53 trillion as of April 30, down from $1.54 trillion at the end of March. The decrease in AUM was primarily driven by long-term net outflows totaling $10 billion, largely attributed to Western Asset Management. These outflows were somewhat mitigated by favorable foreign exchange movements. Excluding the impact from Western Asset Management, the long-term net inflows remained steady.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Franklin Resources Inc (BEN, Financial) is $18.15 with a high estimate of $23.00 and a low estimate of $14.00. The average target implies an downside of 9.30% from the current price of $20.01. More detailed estimate data can be found on the Franklin Resources Inc (BEN) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Franklin Resources Inc's (BEN, Financial) average brokerage recommendation is currently 3.3, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Franklin Resources Inc (BEN, Financial) in one year is $19.01, suggesting a downside of 5% from the current price of $20.01. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Franklin Resources Inc (BEN) Summary page.
BEN Key Business Developments
Release Date: May 02, 2025
- Assets Under Management (AUM): Ended the quarter at $1.54 trillion, a decrease from the prior quarter.
- Institutional One-but-Unfunded Pipeline: Increased by $2.3 billion to $20.4 billion.
- Long-term Net Outflows: $26.2 billion, including $3.3 billion of reinvested distributions.
- Equity Long-term Inflows: $38.9 billion.
- Fixed Income Net Outflows: $30.5 billion; excluding Western, net inflows were $2.8 billion.
- Fundraising in Alternatives: Generated $6.8 billion for the quarter, with private market assets totaling $6.1 billion.
- ETF Net Flows: Attracted $4.1 billion during Q2, reaching a record-high AUM of $37 billion.
- Retail SMA AUM: $144.2 billion, with net inflows of $1.5 billion; excluding Western, record net inflows of $3.2 billion.
- Adjusted Operating Income: $377.2 million, a decrease of 8.6% from the prior quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Franklin Resources Inc (BEN, Financial) reported a significant increase in its institutional one-but-unfunded pipeline, reaching $20.4 billion, the highest level since 2022.
- The company has a diversified asset management platform with $1.54 trillion in assets under management, spread across various asset classes, vehicles, and geographies.
- Franklin Resources Inc (BEN) saw positive net flows in multi-asset and alternatives, generating a combined $9.7 billion in positive net flows.
- The ETF business experienced its 14th consecutive quarter of positive net flows, attracting $4.1 billion during Q2, with a record-high AUM of $37 billion.
- The company launched its first perpetual secondaries private equity fund, raising an initial combined $2 billion, demonstrating strong growth in the wealth management channel.
Negative Points
- Franklin Resources Inc (BEN) faced long-term net outflows of $26.2 billion, primarily due to the impact of long-term net outflows at Western Asset and negative markets.
- Fixed income net outflows were significant at $30.5 billion, although excluding Western, fixed income net inflows were $2.8 billion.
- The company experienced a decrease in adjusted operating income by 8.6% from the prior quarter, primarily due to compensation expenses and the impact of Western.
- Western Asset Management, a subsidiary, faced $10 billion in outflows in April, indicating ongoing redemption pressures.
- The company is navigating market volatility and geopolitical tensions, which have created uncertainties and challenges in maintaining stable growth.
