Franklin Resources Continues To Struggle With Cash Outflows

Barclays provided its outlook on Franklin Resources, Inc. BEN in the report Tuesday, estimating the long-term outflows of around $6 billion in June.

According to the analysts, June AUM decreased 0.7 percent month-over-month, compared to their -0.9 percent estimate, and long-term AUM came in at $726 billion, in line with their $724 billion forecast for the month. The analysts believe the company saw market returns inclusive of FX just above breakeven at about +0.1 percent, or a gain of +$1.0 billion.

"We estimate that LT outflows fell somewhere in the $5-7bn range, including non-reinvested distributions. We forecast that global equities made up almost $2bn of the $2.5bn of outflows we forecast for equities," the analysts wrote. "International fixed income we estimate accounted for a majority of the $2.8bn of outflows we forecast for fixed income… We believe that hybrid saw outflows of less than $1bn."

The bank kept its Underweight rating and $31 price target.