Key Takeaways Franklin Resources Inc. (BEN) is scheduled to report third-quarter fiscal 2025 results (ended June 30) on August 1, before market open. BEN's quarterly earnings and revenues are anticipated to have declined from the year-ago reported levels. In the last reported quarter, Franklin's earnings met the Zacks Consensus Estimate. Results were affected by lower revenues and assets under management (AUM). Yet, lower expenses supported the results to some extent. BEN's earnings beat the consensus estim ...

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - The industry and market are increasingly focusing on multi - asset ETFs as an innovative product offering one - stop asset allocation solutions. The report explores the development of US multi - asset ETFs to provide insights for domestic market innovation [2][11]. - US multi - asset ETFs have shown significant growth in recent years, with distinct characteristics such as strong head - effects in scale, rapid development of actively managed products, and extensive application of FOF - type products [2][20][31]. - The development of US multi - asset ETFs offers important lessons for the domestic market, including deepening multi - asset index development, diversifying allocation strategies, and broadening underlying asset investment tools [5]. 3. Summary by Directory 3.1 Two Action Plans Mentioned, Multi - asset ETFs Are Approaching - The "Public Offering Plan" emphasizes increasing the creation of asset - allocation products to meet the needs of investors with different risk preferences and promote the coordinated development of equity and fixed - income investments [8]. - The "Index Plan" proposes researching and launching innovative index products such as multi - asset ETFs and expanding the underlying asset categories of ETFs. Recent releases of multi - asset indices indicate growing market attention [10][11]. 3.2 Analysis of the Development History and Current Situation of US Multi - asset ETFs - In 2005, BlackRock issued the world's first multi - asset ETF in Canada. In 2006, Invesco launched the first US multi - asset ETF. After the 2008 financial crisis, multi - asset ETFs evolved rapidly [13][14]. - As of March 31, 2025, there are 181 multi - asset ETFs in the US market, with a total scale of $36 billion, ranking first globally. However, their scale accounts for only 0.35% of all US ETFs, indicating significant growth potential [18]. - The top three fund managers in terms of management scale are BlackRock, Pacer Advisors, and First Trust Portfolios, with a combined scale ratio of 45.35%. The top ten multi - asset ETFs in terms of fund scale account for 51.26% of the total scale [22][25]. - Actively managed multi - asset ETFs have developed rapidly. As of March 31, 2025, 146 out of 181 multi - asset ETFs are actively managed, accounting for 80.66%. Their issuance has increased explosively since 2021 [31]. - FOF - type products are widely used in US multi - asset ETFs. As of March 31, 2025, 73 out of 181 multi - asset ETFs are marked as FOF - type, accounting for nearly 40%, with a fund scale of $13.041 billion, about 36% of the total [34]. - The expense ratios of US multi - asset ETFs vary significantly. The average expense ratio of all 181 multi - asset ETFs is 0.80%, with actively managed and passively managed products having average expense ratios of 0.83% and 0.69% respectively. The expense ratio has generally remained low since 2016 [5][40]. 3.3 Exploration of the Strategy Classification of US Multi - asset ETFs - **Core Allocation Type**: This is the most common strategy type, further divided into target - risk, macro - strategy, and subjective - allocation subtypes. Target - risk type aims to meet pre - designed risk metrics, with 28 products and a scale of $8.176 billion. Macro - strategy type adjusts asset allocation based on macro - economic analysis, with 12 products and a scale of $0.937 billion. Subjective - allocation type gives investment managers high freedom, with 57 products and a scale of $10.402 billion [44][47][51]. - **Trend - Following Type**: These ETFs use momentum factors or trend - following models for asset allocation. As of March 31, 2025, there are 26 products with a scale of $7.193 billion, accounting for about 20% of the total [54][55]. - **Target - Dividend Type**: These ETFs focus on interest (dividend) income, with 22 products and a scale of $6.384 billion. The average historical dividend rate of 17 products issued before 2024 is 7.20%, much higher than other types [58][63]. - **Option - Strategy Type**: These ETFs add option - based derivatives to underlying assets to change the risk - return characteristics. As of March 31, 2025, there are 36 products with a scale of $2.907 billion, accounting for 8.08% of the total [63][64]. 3.4 Suggestions and Insights - **Investor Suggestions**: Different types of investors can choose corresponding multi - asset ETFs. For example, risk - sensitive investors can choose target - risk type; policy - sensitive investors can choose macro - strategy type; investors seeking stable cash flow can choose target - dividend type; those preferring quantitative strategies can choose trend - following type; and investors interested in alternative strategies can choose option - strategy type [68][69][70]. - **Insights for the Domestic Market**: The domestic market should prioritize using existing multi - asset indices as tracking targets, deepen the development of multi - asset indices, focus on stable strategies and diversify allocation strategies, and broaden underlying asset investment tools to promote the development of multi - asset ETFs [72][73][75].

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]

智通财经APP获悉，摩根士丹利将富兰克林资源公司(BEN.US)的目标价从14美元上调至19美元，并维 持"减持"评级。 据了解，富兰克林资源公司是一家全球投资管理机构，旗下子公司以富兰克林邓普顿的名义运营，服务 于150多个国家的客户。 截至7月3日美股收盘，富兰克林资源公司涨0.36%，报24.88美元。该股今年以来累计上涨26%。 截至2025年6月末，富兰克林资源公司长期资产管理规模为1.534万亿美元，环比增长2.1%，同比下降 3.0%，较摩根士丹利此前预期高出0.7%或113亿美元。 6月该公司长期资金净流出7亿美元，相比之下，摩根士丹利预期流出53亿美元，5月则流入14亿美元。 摩根士丹利表示，考虑到有机增长压力和长期挑战，富兰克林资源公司的预期市盈率为7.8倍，低于同 行。固定收益子公司西方资产面临挑战、资产负债表能力下降以及关键基金的投资表现不佳等因素可能 会在更长时间内拖累富兰克林资源公司的有机增长。 富兰克林资源公司公布了2025财年第二季度的资产管理和资金流动数据。该公司当季长期资金流出90亿 美元，年化降幅为2.5%，摩根士丹利此前预期流出额为140亿美元，市场普遍预期流出额为18 ...

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].

Market Overview - Wall Street's seasonal adages have not held true this year, with April ending on a mixed note and May showing impressive gains in U.S. stock markets [1][2] - All three major indexes finished May in the green, with the Dow rising 3.9%, the S&P 500 climbing 6.2%, and the Nasdaq Composite jumping 9.6%, marking their best monthly performances since November 2023 [2] Financial Services Sector Performance - The Financial Services sector was one of May's top performers, up 4.5%, with notable stocks including Coinbase Global, Northern Trust, BNY Mellon, Franklin Resources, and Bank of America [3][9] - Coinbase is positioned to benefit from heightened crypto market volatility and rising asset prices, with 83% of its total revenues coming from the U.S. market [7][10] - Northern Trust is leveraging organic expansion efforts and has launched Family Office Solutions targeting ultra-high-net-worth clients, which is expected to enhance its Wealth Management segment [12][13] - BNY Mellon is focusing on international growth initiatives and has seen a five-year CAGR of 6.2% in net interest income, with expectations for continued improvement [18][19] - Franklin has grown through acquisitions and partnerships, enhancing its presence in alternative investments and multi-asset solutions [22][23] - Bank of America is expected to benefit from higher interest rates, with a projected 6-7% rise in net interest income for 2025, supported by aggressive branch expansion [26][28] Company-Specific Insights - Coinbase is investing in infrastructure to expand crypto's practical use, including a low-cost Layer 2 scaling solution [8] - Northern Trust is focused on disciplined headcount management and process automation to improve productivity and meet financial targets, achieving a return on equity of 13% in Q1 2025 [14][15] - BNY Mellon is facing challenges with rising expenses and volatility in fee income, which constitutes almost 70% of total revenues [20] - Franklin's diversification into alternative asset classes is expected to drive assets under management growth, although market fluctuations pose risks to investment management fees [24][25] - Bank of America is enhancing its digital offerings and cross-selling products through initiatives like the Zelle money transfer system and the digital assistant Erica [29]