Franklin Resources AUM hits record $1.5 trillion in Q4

Franklin Resources' assets under management reached a record $1.498 trillion as of Dec. 31, up 6% from Sept. 30 and 115% from the same period the year prior, the company's earnings report Tuesday showed.

President and CEO Jennifer M. Johnson said in an earnings call that the AUM was "driven primarily by strong market performance." She added that the final three months of 2020 marked the "first full quarter of the combined company" after Franklin's acquisition of Legg Mason on July 31.

The firm experienced $14.7 billion in total net outflows for the three months ended Dec. 31, compared to $23.7 billion in net outflows for the quarter ended Sept. 30 and $11.3 billion in outflows for the quarter ended Dec. 31, 2019. Long-term outflows, meanwhile, totaled $4.5 billion for the fourth quarter, compared to $12.6 for the third and $12.3 billion for the fourth quarter of 2019.

By asset class, Franklin had $669.9 billion in fixed income as of Dec. 31, up 2% from Sept. 30 and up 175.7% from the year earlier. Equity assets totaled $495.7 billion, up 13% from three months prior and up 81.4% from 12 months earlier.

Multiasset AUM reached $141.1 billion, up 9% from the previous quarter and up 12.3% from the year-earlier period. Alternatives hit $127.1 billion, up 4% over three months and 175.7% year-over-year. The firm had $64.2 billion in cash, down 11% from Sept. 30 but up 517.3% from Dec. 31, 2019.

Operating revenues totaled $2 billion as of Dec. 31, up 17% from the previous quarter and up 44% on a year-over-year basis. Net income, meanwhile, reached $345.3 million in the fourth quarter, up 338% from the third quarter but down 1% from the fourth quarter of 2019.