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]

Core Viewpoint - Federated Hermes, Inc. (FHI) reported strong financial performance in Q1 2025, with adjusted earnings per share of $1.10, exceeding the Zacks Consensus Estimate of 91 cents, and reflecting a 23.6% increase year-over-year [1] Group 1: Financial Performance - Total revenues increased by 7% year-over-year to $423.5 million, surpassing the Zacks Consensus Estimate by 0.9% [2] - Quarterly net investment advisory fees rose by 9% year-over-year to $287.5 million, exceeding the estimate of $282.9 million [2] - Net income on a GAAP basis was $101.1 million, representing a 35% increase from the prior-year quarter [1] Group 2: Operating Expenses - Total operating expenses declined by 2% year-over-year to $291.8 million, significantly lower than the estimate of $324 million [3] - Net other service fees fell by 6% year-over-year to $34.9 million, while net administrative service fees rose by 7% to $101.1 million [3] Group 3: Asset Management - Total managed assets reached a record level of $839.8 billion, up 7.8% year-over-year, exceeding the estimate of $823 billion [5] - Money-market assets increased by 10.1% year-over-year to $637.1 billion, while fixed-income assets rose by 3.3% to $99.5 billion [5] - Average managed assets totaled $843.2 billion, reflecting an 8.6% year-over-year increase, surpassing the estimate of $813.2 billion [6] Group 4: Capital Distribution - The company declared a quarterly cash dividend of 34 cents per share, marking a 9.7% increase from the previous payout, to be paid on May 15, 2025 [7] - FHI repurchased 3,057,542 shares of its class B common stock for $120.1 million during the reported quarter [7] Group 5: Market Position - Federated Hermes demonstrates substantial growth potential, supported by a diverse asset and product mix and a solid liquidity position, despite facing uncertain market conditions [9]