Franklin Resources managed $580.3 billion as of March 31, the second quarter of the company’s fiscal year, down 16.9% from Dec. 31 and down 18.5% from March 31, 2019, Franklin’s earnings report issued Thursday showed.
The $118 billion decline in the three-months ended March 31 was due to $98.2 billion of performance losses and distributions and net outflows of $25.4 billion.
Total net outflow for Franklin in the quarter ended Dec. 31 was $12.3 billion and net outflow was $6.3 billion in the quarter ended March 31, 2019.
Franklin said in a commentary accompanying the earnings report that net outflows were “slightly offset” by the acquisition in March of Athena Capital Advisors, a registered investment adviser with assets of $5.6 billion, by the firm’s Fiduciary Trust Co. International unit.
U.S. and international institutional investor combined net flows were down $10.2 billion in the current quarter vs. being down $10.8 billion in the prior quarter and down $13.6 billion in first quarter 2019.
“Flows were significantly impacted by industrywide pressures that resulted in significantly elevated redemptions this quarter ... however, we are encouraged by the rebound in long-term sales, particularly in U.S. retail, which had its best quarter in nearly three years,” according to the commentary.