Franklin Resources’ AUM logs 4% gain in quarter, 149% jump for year

Franklin Resources' assets under management reached a record $1.55 trillion as of June 30, up 4% from March 31 and 149% from the same period the year prior, the company's earnings report Tuesday showed.

The company's results were bolstered by market appreciation and its acquisition of Legg Mason on July 31, 2020.

"When we acquired Legg Mason a year ago, we set ambitious goals for our combined organization, and we're proud of the progress made toward achieving them," said Jennifer M. Johnson, president and CEO of Franklin Resources, in the release. "Investment performance continues to strengthen across our differentiated specialist investment managers in a broad array of investment strategies."

Ms. Johnson added that the firm "saw positive net flows into the majority of (its) specialist investment managers — and Benefit Street Partners, Clarion, ClearBridge, Fiduciary Trust International and Martin Currie all reached record highs in AUM."

The firm experienced $8.8 billion in total net outflows for the three months ended June 30, compared to $3 billion in net outflows for the quarter ended March 31 and $11.6 billion in outflows for the quarter ended June 30, 2020. Long-term outflows, meanwhile, totaled $6.6 billion for the quarter, compared to $4.2 billion for the previous quarter and $11.3 billion for the quarter ended June 30, 2020. The company's fiscal year ends Sept. 30.

By asset class, Franklin had $658.1 billion in fixed income as of June 30, up 2% from March 31 and up 211% from the year earlier. Equity assets totaled $536.9 billion, up 5% from three months prior and up 128% from 12 months earlier.

Multiasset AUM reached $153 billion, up 3% from the previous quarter and up 29% from the year-earlier period. Alternatives hit $140 billion, up 7% over three months and 201% year-over-year. The firm had $63.3 billion in cash, down 3% from March 31 but up 509% from June 30, 2020.

Operating revenues totaled $2.17 billion as of June 30, up 5% from the previous quarter and up 87% on a year-over-year basis. Net income, meanwhile, reached $438.4 million in the quarter, up 15% from the first quarter and up 51% from the year-earlier period.