Franklin Resources Seems To Be Falling Out Of Favor
Fri, Jul. 15, 10:10 AM
- Wells Fargo ticks off 20 S&P 500 stocks with the most upside potential vs. consensus, and the 20 with the most downside risk vs. consensus.
- The list is compiled by comparing the midpoint of Wells Fargo Securities valuation ranges to consensus fair value estimates, volatility adjusting the percentage difference, and ranking the resulting score.
- Upside: AEE, BEN, CCL, DVA, EIX, ES, EXC, FTR, HUM, INTC, JNJ, LNT, PEG, PNW, SCG, T, WEC, WU, XEL, XOM.
- Downside: ANTM, C, CI, COF, EQT, FOXA, FSLR, GS, KIM, LH, MON, MSI, MYL, NVDA, NWSA, SLG, TIF, TSO, UA, WLTW.
Mon, Jul. 11, 4:42 PM
Thu, Jul. 7, 1:35 PM
- Continuing to benefit from the trend toward low-cost, index-tracking funds, Vanguard Group pulled in $148B in the first half of the year, topping last year's record H1 haul of $140B.
- The fund giant sports four of the top 10 ETF inflow recipients so far this year, the S&P 500 Index Fund (NYSEARCA:VOO), the FTSE Developed Markets ETF (NYSEARCA:VEA), the REIT Index Fund (NYSEARCA:VNQ), and the Total Bond Market Index Fund (NYSEARCA:BND).
- Eyeing with envy: BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM
Thu, Jun. 16, 9:47 AM
- "We are not suggesting the buyout of WisdomTree (WETF -2.3%) is imminent or there are talks, but the possibilities are intriguing," says analyst Surinder Thind.
- Possible suitors? "Everyone," says Thind. Narrowing that down a bit, he thinks the company would be most valuable in the hands of Franklin Resources (NYSE:BEN) or T. Rowe Price (NASDAQ:TROW).
- Franklin's growth challenges are well known, he says, and putting WisdomTree products through its distribution network could produce strong synergies. For T. Rowe Price, it's in the early stages of developing an ETF strategy, and a purchase of WETF would quickly solve that issue.
Tue, Jun. 14, 4:44 PM
Tue, Jun. 14, 4:33 PM
- In addition to the regular $0.18 per share quarterly dividend, Franklin Resources (NYSE:BEN) adds 50M shares to its buyback program. This new authorization is in addition to the 12.6M shares already available for purchase.
- The company repurchased 24.6M shares from October through the end of May.
- The float is about 586M shares.
- Source: Press Release
Thu, Jun. 9, 8:17 AM
Wed, Jun. 8, 7:36 AM
- "In any business where margins are under pressure, there will be consolidation as a way of making efficiencies, and that is being accelerated” by the secular shift to passive investments (ETFs), Franklin Resources (NYSE:BEN) CEO Greg Johnson tells the FT.
- Last year, stock ETFs took in $200B in assets, while actively managed equity funds lost $124B. In the U.S. - where the shift is most pronounced - ETF assets comprise more than 40% of total equity fund assets, up from 18.8% a decade ago.
- The bond industry is also shifting, with more than 25% of all fixed-income money in ETFs, up from less than 10% ten years ago.
- More Johnson: He doesn't see consolidation among the top ten players in the asset management industry, but expects it more from the middle of the market.
- His company this week also launched its first "smart beta" ETFs.
Mon, Jun. 6, 10:22 AM
- Franklin Templteton (BEN +1.7%) introduces a new line of business, LibertyShares, and its first suite of strategic beta ETFs, LibertyQ. The suite includes three multi-factor core portfolio funds and one fund focusing on dividend stocks.
- The four: Franklin LibertyQ Global Equity ETF (NYSEARCA:FLQG), Franklin LibertyQ Emerging Markets ETF (NYSEARCA:FLQE), Franklin LibertyQ International Equity Hedged ETF (NYSEARCA:FLQH), Franklin LibertyQ Global Dividend ETF (NYSEARCA:FLQD),
- Source: Press Release
- Previously: Fidelity aims to shake up ETF sector (May 26)
Thu, Jun. 2, 11:49 AM
- "The recent pace of outflows at Franklin Resources (BEN -3.4%) confirms our concerns around relying on just a handful of strategies to drive growth," says analyst Brennan Hawken, cutting the stock to Sell, with price target reduced to $28 from $39 (current price is $35.58).
- Of all the asset managers in his team's coverage universe, Hawken says BEN is most at risk from the new Department of Labor fiduciary rule given the company's reliance on the broker sold channel coupled with weak investment performance.
- He notes several of Franklin's flagship funds have lost more than 60% of retail AUM.
Wed, Jun. 1, 4:01 PM
- Struggling with a steady stream of outflows in recent years, traditional asset managers still have substantial free-cash flow generation and balance sheet liquidity.
- "We think many asset managers can remain dividend machines," says KBW's Robert Lee. While the rate of dividend growth should slow this year and next, there's still room for managements to boost payouts, particularly as outfits like BlackRock (NYSE:BLK), Franklin Resources (NYSE:BEN), Eaton Vance (NYSE:EV), Invesco (NYSE:IVZ), and Legg Mason (NYSE:LM) look to build long-term records of annual dividend growth.
Thu, May 26, 2:36 PM
- Fidelity last week began providing details on six "smart beta" ETFs. Up until now, Fidelity's 11 ETF offerings were plain vanilla, with nearly all run by BlackRock (NYSE:BLK), the owner of iShares.
- Smart beta is where the action is for new entrants into ETFs like Goldman, JPMorgan, Janus (NYSE:JNS), Legg Mason (NYSE:LM), Principal Financial (NYSE:PFG), and Franklin Resources (NYSE:BEN), as it promises the possibility of an "enhanced" index fund.
- Smart beta also fills the gap while mutual fund firms figure out the regulatory path to offering ETF versions of their popular funds (like Fidelity's Contrafund).
- According to FTSE Russell, the percentage of ETF owners currently having a look at smart beta has jumped to 36% from 15% two years ago.
- Previously: First details for Fidelity's first 6 'smart beta' ETFs (May 20)
Wed, May 18, 11:12 AM
- Sweeping new compensation rules released by six federal agencies last month would free up pay restrictions for the BlackRock's (NYSE:BLK) of the world, while tightening them for banks like JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), and Goldman Sachs (NYSE:GS).
- Source: Bloomberg
- The result is likely an even stronger flow of talent exodus from the big banks and to outfits like BlackRock, Vanguard, Pimco, and Fidelity, to name four.
- “They keep making it more difficult to be a big bank,” says a D.C. attorney.
- At those lenders with more than $250B in assets, top management would have 60% of their bonuses deferred for four years. Tough, but even tougher are clawback provisions allowing banks to take back money up to seven years after bonuses vest.
- Though mammoth in size, the overwhelming majority of assets at BlackRock and the like are client, not proprietary assets. Thus, they aren't subject to the same restrictions. Franklin Resources (NYSE:BEN), for instance, has $743B in AUM, but only about $16B of its own assets. Blackstone (NYSE:BX) manages $344B, but only $22B of its own money.
Tue, May 10, 1:50 PM
- Growth stocks have outperformed value stocks each year since 2007, but value investors are often rewarded after such periods. C.T. Fitzpatrick, the CIO of Vulcan Value Partners and the manager of Vulcan Value Partners Fund (MUTF:VVPLX), who has beaten the S&P 500 and its peers every year for the past five years gave his 4 value picks in an interview with Barron's.
- Oracle (NYSE:ORCL) is his top pick. Oracle and SAP (NYSE:SAP), both are leaders in the big enterprise market, but Oracle is in a better position with its applications plus database products along with being ahead in converting its customers to the cloud.
- National Oilwell Varco (NYSE:NOV) is a value pick since it generated tremendous free cash flow despite a poor quarter.
- Anthem (NYSE:ANTM) is a new addition since its business model is well-suited for the Affordable Care Act. Fitzpatrick believes that the company's stock price doesn't reflect the fundamentals.
- United Technologies (NYSE:UTX) gets interest as it has generated high free cash flow despite its bottom line being hurt by the strong dollar. Their accretion of cash is helping return on capital thereby making it a value pick.
- His top 10 holdings as of Dec. 31 are Oracle, Parker Hannifin (NYSE:PH), National Oilwell Varco, Franklin Resources (NYSE:BEN), Discovery Communication (NASDAQ:DISCK), Swiss RE AG, MasterCard (NYSE:MA), Cisco Systems (NASDAQ:CSCO), Anthem and Boeing (NYSE:BA).
Mon, May 9, 4:34 PM
Mon, May 2, 10:40 AM
Franklin Resources, Inc. is a holding company that engages in global investment management. Its services include fund administration, sales, distribution, marketing, shareholder servicing, trustee, custody and other fiduciary services. The company was founded by Rupert H. Johnson, Sr. in 1947... More
Industry: Asset Management
Country: United States
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