Core Insights - Active asset managers are under pressure as trillions of dollars are shifting into passive index funds, necessitating adaptation to maintain competitiveness [1] - Some firms leverage their scale to protect legacy assets, while others pursue aggressive acquisitions to expand their franchises [1] Industry Trends - The trend of capital flowing into passive investment vehicles is reshaping the asset management landscape, prompting active managers to rethink their strategies [1] - The competitive landscape is increasingly favoring firms that can either defend their existing assets or innovate through acquisitions [1]

Core Viewpoint - Invesco (IVZ) is currently viewed as a better value opportunity compared to Franklin Resources (BEN) based on various financial metrics and Zacks Rank evaluations [1][3][7] Valuation Metrics - Invesco has a forward P/E ratio of 9.70, while Franklin Resources has a forward P/E of 12.07, indicating that IVZ is potentially undervalued [5] - The PEG ratio for Invesco is 1.55, compared to Franklin Resources' PEG ratio of 1.98, suggesting that IVZ may offer better value relative to its expected earnings growth [5] - Invesco's P/B ratio stands at 0.69, while Franklin Resources has a P/B ratio of 0.99, further supporting the notion that IVZ is undervalued [6] Zacks Rank and Earnings Outlook - Invesco holds a Zacks Rank of 2 (Buy), indicating a stronger improvement in its earnings outlook compared to Franklin Resources, which has a Zacks Rank of 3 (Hold) [3][7] - The improving earnings outlook for Invesco is a significant factor in its favorable position within the Zacks Rank model [7]

Core Insights - Franklin Resources, Inc. (BEN) reported preliminary assets under management (AUM) of $1.61 trillion as of June 30, 2025, reflecting a 2.1% increase from the previous month driven by favorable market conditions despite long-term net outflows of $1 billion [1][8] AUM Breakdown - Equity assets reached $656.1 billion, marking a 4% increase from the prior month [2] - Fixed income AUM stood at $441.3 billion, showing a marginal increase from the previous month [2] - Alternative AUM slightly decreased to $254 billion [2] - Multi-asset AUM was reported at $183 billion, up 2.6% from May 2025 [2] - Cash management balance increased to $71.9 billion, reflecting a 1.3% rise from the previous month [2] Market Performance and Outlook - The overall AUM growth in June was attributed to positive market performance, although the decline in alternative AUM raises concerns [3] - Franklin's inorganic expansion efforts are noted to continue supporting its financials [3] - Over the past six months, BEN shares have appreciated by 24.4%, contrasting with a 3.3% decline in the industry [4]

Core Viewpoint - Mercurity Fintech Holding Inc. has announced a strategic partnership with Franklin Templeton to integrate the BENJI token and the Franklin OnChain U.S. Government Money Fund into its platform for tokenized real-world assets, aiming to bridge traditional and digital finance [1][6]. Group 1: Partnership Details - The partnership will leverage Franklin Templeton's BENJI token, which provides direct access to the regulated U.S. money market fund FOBXX, combining the stability of government-backed securities with the flexibility of digital assets [2][6]. - This collaboration aims to modernize investment access while maintaining regulatory standards, making institutional-grade financial products more accessible through blockchain technology [6]. Group 2: Operational Benefits - The blockchain-based structure of the BENJI token addresses traditional inefficiencies in money market fund operations, such as reducing settlement times and simplifying asset transfers, while ensuring regulatory compliance [3]. - Mercurity Fintech's platform will allow both institutional and retail investors to access money market opportunities, earn yields on holdings, and facilitate seamless crypto-to-fiat conversions [4]. Group 3: Company Strategy - Mercurity Fintech plans to utilize tokenized treasury products like BENJI to generate returns on capital reserves, enhancing its digital asset ecosystem [5]. - The company's subsidiary, Chaince Securities, will manage investment transactions and advisory services for these tokenized assets, providing compliant distribution and efficient market access [5][8]. Group 4: Company Background - Mercurity Fintech Holding Inc. is a fintech group that offers technology and financial services powered by blockchain infrastructure, aiming to bridge traditional finance and digital innovation [7]. - Chaince Securities, a wholly-owned subsidiary, specializes in investment banking and brokerage services, supporting the vision of integrating traditional finance with blockchain innovation [8]. Group 5: Franklin Templeton Overview - Franklin Templeton is a global investment management organization with over $1.53 trillion in assets under management as of April 30, 2025, and has extensive capabilities in various investment solutions [9].

Group 1: Acquisition Overview - Franklin Resources, Inc. (BEN) announced the acquisition of a majority interest in Apera Asset Management, a pan-European private credit firm with over €5 billion in assets under management (AUM) [1][9] - The acquisition is part of BEN's strategic push into private credit, expanding its direct lending capabilities in Europe's lower middle market, and is expected to close in the third quarter of 2025, pending regulatory approvals [2][3] Group 2: Impact on AUM and Strategic Positioning - Following the acquisition, BEN's global alternative credit AUM will increase to $87 billion, while total pro-forma AUM will reach approximately $260 billion as of April 30, 2025, reinforcing its leadership in diversified alternative investment strategies [3][9] - The acquisition will enhance BEN's private credit capabilities and diversify its geographic presence, complementing existing operations in the U.S. and Europe [3][4] Group 3: Leadership Statements - Jenny Johnson, CEO of Franklin Templeton, emphasized the acquisition as a commitment to building a world-class global alternatives platform and highlighted the value that Apera's expertise will bring to BEN's investment strategies [4] Group 4: Previous Growth Initiatives - Franklin has pursued growth through acquisitions and partnerships, including a strategic minority investment in Envestnet and a collaboration with Japan's SBI Holdings to focus on ETFs and digital assets [5][6] - The acquisition of Putnam Investments and Lexington Partners in previous years has also strengthened BEN's presence in retirement and private equity sectors [6][7] Group 5: Market Context - Over the past six months, BEN shares have gained 1%, contrasting with a 14.7% decline in the industry [8]

Core Insights - Franklin Resources, Inc. (BEN) reported preliminary assets under management (AUM) of $1.57 trillion as of May 31, 2025, reflecting a 2.6% increase from the previous month driven by positive market conditions and net inflows of $1 billion, despite $3 billion in long-term outflows at Western Asset Management [1][7]. AUM Breakdown by Asset Class - Equity assets reached $630.7 billion, marking a 5.7% increase from the prior month [2]. - Fixed income AUM slightly declined to $438.7 billion [2]. - Alternative AUM decreased to $253.5 billion [2]. - Multi-asset AUM grew to $178.5 billion, up 2.8% from April 2025 [2]. - Cash management balance increased to $71.5 billion, nearly 1% higher than the previous month [2]. Market Performance and Outlook - The overall AUM growth in May was attributed to favorable market conditions and net inflows, although the decline in fixed income and alternative AUM raised concerns [3]. - Franklin's inorganic expansion efforts are expected to continue supporting its financial performance [3]. - Over the past six months, BEN shares have gained 1%, contrasting with a 14.7% decline in the industry [4].

Core Viewpoint - Franklin Resources, Inc. (BEN) has shown resilience in its stock performance, gaining 6.2% over the past three months, contrasting with the industry's decline of 8.1% and the S&P 500 Index's dip of 2.7% [1] Group 1: Factors Driving Growth - Strategic acquisitions have expanded Franklin's investment capabilities, notably the acquisition of Putnam Investments in January 2024, which increased its defined contribution AUM to over $100 billion [5] - The acquisition of Lexington Partners in 2022 has enhanced Franklin's exposure to private equity and alternative investments, diversifying revenue streams and reducing reliance on traditional investment management fees [6] - Franklin has recorded a compound annual growth rate (CAGR) of 3.1% in AUM over the past five fiscal years, with growth continuing in the first half of fiscal 2025 [7] - Increasing client demand for alternative asset classes is expected to drive AUM expansion, supported by a regionally focused distribution model that has strengthened non-U.S. business [8] Group 2: Financial Position - As of March 31, 2025, Franklin has $5 billion in liquidity, including cash and cash equivalents, ensuring financial flexibility and no short-term debt, which reduces immediate financial strain [9] - The company announced a repurchase authorization of 27.2 million shares in December 2023, with 29.2 million shares remaining available for repurchase as of March 31, 2025, and a 3.2% increase in its common stock dividend [10][11] Group 3: Near-Term Challenges - Investment management fees, constituting 79.3% of total revenue, have shown volatility, with fluctuations influenced by AUM levels and market conditions [12] - Franklin's cost base has increased at a CAGR of 7.2% over the last three fiscal years, driven by investments in technology and talent, which may pressure bottom-line growth [14] Group 4: Valuation and Estimates - Franklin is trading at a forward 12-month price-to-earnings (P/E) multiple of 10.14X, below the industry average of 16.42X, but at a premium compared to peers Invesco and Grupo Aval [15][18] - Sales estimates for the current year (2025) are projected at $8.29 billion, reflecting a year-over-year decline of 2.27% [21] - Earnings estimates for 2025 and 2026 have been revised downward, indicating a cautious outlook from analysts [22]

Core Insights - The article discusses the author's commitment to Franklin Resources Inc. (BEN) despite a recent loss of approximately 3.7% in stock value, indicating a belief in the company's potential for recovery and growth [1] Group 1: Investment Strategy - The author employs a quantitative investment approach that combines fundamental analysis with momentum research, aiming to identify stocks with a significant disconnect between market perception and actual potential [1] - A proprietary software tool has been developed to track levels of optimism and pessimism in stock prices, which aids in making informed investment decisions [1] Group 2: Market Outlook - The focus is on investing in companies that are likely to surprise the market positively in the coming months, suggesting a strategy centered on identifying undervalued opportunities [1]

Core Viewpoint - Franklin Resources, Inc. (BEN) reported a preliminary assets under management (AUM) of $1.53 trillion as of April 30, 2025, reflecting a marginal decrease from the previous month due to long-term net outflows of $10 billion, which included $10 billion from Western Asset Management, partially offset by positive foreign exchange impacts [1] AUM Breakdown by Asset Class - Equity assets amounted to $597.3 billion, showing a slight decline from the previous month [2] - Fixed income AUM was $439.5 billion, down 1.5% from the prior month [2] - Alternative AUM increased marginally to $253.8 billion [2] - Multi-asset AUM stood at $174.2 billion, falling nearly 1% from March 2025 [2] - Cash management balance rose to $70 billion, up 1.6% from the previous month [2] Company Performance and Outlook - April was challenging for BEN due to long-term net outflows; however, improvements in alternative AUM and cash management, along with efforts for inorganic growth, are expected to support financials [3] - Over the past six months, BEN shares have decreased by 2.9%, contrasting with a 14% decline in the industry [4] Zacks Rank and Comparisons - Franklin currently holds a Zacks Rank 5 (Strong Sell) [6] - Other companies in the sector, such as Alliance Cap Management L.P. (AB) and Victory Capital Holdings, Inc. (VCTR), are set to announce their monthly performances soon, with AB shares rising 36.9% and VCTR shares gaining 16.6% over the past year [6]

Franklin Resources Inc. (BEN) reported second-quarter fiscal 2025 (ended March 31) adjusted earnings of 47 cents per share, which matched the Zacks Consensus Estimate. However, the bottom line compared unfavorably with 56 cents reported in the year-ago quarter.BEN’s results were affected by lower revenues and assets under management (AUM) balance. Yet, lower expenses supported the results to some extent. In light of this, Franklin’s shares rose 1.1% in Friday’s pre-market trading session.Net income (GAAP ba ...