Invesco and Franklin Templeton both reported drops in assets on the back of weak equity markets in September.
Invesco’s total assets as of Sept. 30 were $409.6 billion, down 8.9% from the previous month and down 11.2% from the previous quarter. Money-market assets totaled $81.1 billion on Sept 30, down 13% from the previous month.
Invesco’s money-market outflows are “not surprising given the issues that arose with credit and liquidity risk,” said Michael Kim, associate director and analyst at Sandler O’Neill and Partners. Assets in other parts of the business were fairly stable, despite the market turmoil, Mr. Kim said. He expects the outflows in money-market assets to be a short-term phenomenon.
Franklin’s assets totaled $507.2 billion on Sept. 30, down 10% from the previous month and down 12.6% from the previous quarter.
Mr. Kim estimates anywhere between $5 billion and $7 billion of Franklin’s asset decline can be attributed to retail client outflows in September as some of Franklin’s flagship Templeton funds posted weak returns.
“We’re likely going to see that across the industry; there were some pretty steep outflows,” said Mr. Kim, anticipating that other firms will report similar results in the coming weeks.
Invesco spokesman Ivy McLemore and Franklin spokesman Matthew Walsh declined to comment.
