Franklin Resources buys Legg Mason for $4.5 billion amid monthly outflows of nearly $2.5 billion. According to Morningstar, Franklin Resources held about $344.1 billion in open-end funds at the end of January, while Legg Mason was reported to have $135.8 billion.
Can Legg Mason stop the leak for Franklin?
Franklin did see net asset growth of 4.9% between December 2018 and January despite losing $32.8 billion in net flows as its active management benefited from surging equity markets and falling interest rates. A longer window shows that since the end of 2016, net outflows have been more than $93.4 billion.
Legg Mason, on the other hand, steadily grew assets under management during 2019 via net client inflows and by way of market appreciation. The manager averaged about $325 million in monthly flows, including January's $2.3 billion in new money.