Franklin Resources Inc.NYSE
Fri, Nov. 18, 10:18 AM
- The flood of money pouring into stocks since the election isn't helping mutual funds, which somehow saw $3B of outflows in the last week. Equity ETFs, meanwhile, had $27B of inflows, according to Goldman Sachs - the largest weekly amount on record.
- Equity mutual funds had outflows of $4.4B, making YTD outflows of roughly $120B.
- via Bryan Mortenson
- Interested parties: BlackRock (NYSE:BLK), WisdomTree (NASDAQ:WETF), Franklin Resource (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), Invesco (NYSE:IVZ), T. Rowe Price (NASDAQ:TROW), AllianceBernstein (NYSE:AB), Affiliated Managers (NYSE:AMG), Federated Investors (NYSE:FII), Waddell & Reed (NYSE:WDR)
- Previously: Financial ETF sees fastest-ever inflows (Nov. 16)
Mon, Nov. 14, 11:33 AM
- The major averages are stuck in the red, but the XLF is up 2.2% and the KBE +3% as financial sector investors mull a world of higher interest rates and lowered regulation.
- REITs continue to fall, but thanks to this fall's sector reclassification, those names are no longer in the financial indexes.
- Regional banks: Regions Financial (RF +6.9%), New York Community (NYCB +2.9%), KeyCorp (KEY +3.1%), PNC Financial (PNC +2.4%), Fifth Third (FITB +4%), SunTrust (STI +3%), M&T (MTB +3.1%)
- Insurers: MetLife (MET +2.2%), Lincoln (LNC +3.2%), AIG (AIG +2.1%), Hartford (HIG +2.3%), Travelers (TRV +1.4%)
- Online brokerage: Schwab (SCHW +3.6%), Ameritrade (AMTD +2.5%)
- Asset management: Franklin Resources (BEN +3.2%), Och-Ziff (OZM +4.5%), Invesco (IVZ +2.2%), T. Rowe Price (TROW +2.8%), BlackRock (BLK +0.4%)
Thu, Nov. 10, 3:11 PM
- Pulling his Sell rating, UBS's Brennan Hawken, says the Trump victory is likely to lead to eased regulatory pressure. There's also $6B in overseas cash waiting to be repatriated, which could translate into a 29% special dividend.
- Downgrading to Sell, Deutsche's Brian Bedell says Franklin's (NYSE:BEN) 12% surge yesterday already fully factors in any repatriation and improvement in organic growth. As for repeal of the DOL rule, Bedell says it's "far from certain."
- Source: Barron's
- BEN is lower by 1% today, vastly underperforming a big rally in the asset managers.
Wed, Nov. 2, 2:32 PM
- With $250.6B of inflows through this year's first 10 months, Vanguard has already broken through the record level of inflows set during the entirety of 2015 (last year's total inflow was $236.1B). More than $200B of that amount has gone into low-fee index funds.
- Vanguard's gains are generally at the expense of active fund managers like Fidelity, Franklin Resources (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), and AllianceBernstein (NYSE:AB), to name a few.
- Assets at rival BlackRock (NYSE:BLK) - a major player in both active and passive investing - recently topped $5T for the first time ever.
- Passive investing top? Strictly a suburban outfit, Vanguard is nearing a deal for about 20K square feet of office space near Penn's campus in Philadelphia for a research and development hub.
Wed, Oct. 26, 9:03 AM
- FQ4 net income of $472.1M or $0.82 per share vs. $446.4M and $0.77 in Q2, $358.2M and $0.59 one year earlier.
- Full-year net income of $1.727B or $2.94 per share vs. $2.035B and $3.29 in 2015.
- FQ4 operating margin of 35.9% vs. 38.3% a year ago. Full-year margin of 35.7% vs. 38.1% in 2015.
- AUM of $733.3B about flat Q/Q, and down 5% Y/Y. Net outflows of $22.1B during quarter vs. $19.2B in Q2 and $28.6B one year ago.
- Previously: Franklin Resources beats by $0.13, misses on revenue (Oct. 26)
- BEN flat premarket
Wed, Oct. 26, 8:32 AM
Tue, Oct. 25, 5:30 PM
- AB, AGCO, AIT, ALLY, AOS, AVX, AVY, BA, BCO, BEN, BIIB, BOKF, BSX, CFR, CG, CMCSA, DTE, ENTG, EVR, EXAS, FDML, FLIR, GD, GNRC, GRA, GRMN, GRUB, HBAN, HES, HLT, IR, KO, LEA, LH, LRN, LUV, MDCO, MDLZ, MKTX, MMYT, NAP, NDAQ, NEO, NOC, NSC, NYCB, OC, PAG, PB, POL, RES, ROL, SAIA, SIX, SLAB, SLGN, SMED, SONS, SPG, STRA, STT, UCBI, VG, VLY, VNTV, WEC, WM, WOOF, WYN
Mon, Oct. 17, 2:00 PM
- It's the kind of headline that makes one wonder if the bottom might already be in for traditional asset managers.
- The numbers won't surprise anyone who's been following along for any length of time: Over the three years ended Aug. 31, investors added nearly $1.3T to passive mutual funds and ETFs, while pulling more than $250M from active mutual funds.
- "Stock pickers, archetypes of 20th century Wall Street, are being pushed to the margins," write Anne Tergesen and Jason Zweig. "The pressure has gotten so great that passive has become the default,” says former Fidelity CIO Philip Bullen.
- And by the way, there's still plenty of room for the trend to continue - 66% of mutual and exchange-traded fund assets are still actively invested (down from 84% ten years ago).
- Active fund firms that don't “position themselves for the sea change” will be “relegated to the dustbin of history," said Cohen & Steers (NYSE:CNS) in shareholder letter earlier this year.
- Notable industry names: BLK, OZM, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, MN, EV, AMP
Thu, Oct. 13, 2:56 PM
- It's a mixed bag, but the continuing broad theme for flows is the domination of passive strategies and fixed-income.
- More than half of the managers in Katz's coverage universe saw outflows last month - WisdomTree (NASDAQ:WETF), Waddell & Reed (NYSE:WDR), and Franklin Resources (NYSE:BEN) getting hit the worst.
- Among active managers, only Affiliated Managers Group (NYSE:AMG) and AllianceBernstein (NYSE:AB) saw inflows.
Tue, Oct. 11, 9:44 AM
Thu, Oct. 6, 8:51 AM
- In one of the highest quarterly amounts ever, investors moved $92B into ETFs in Q3, according to UBS, bringing AUM for U.S.-listed ETFs to about $2.4T.
- For the year, $150B has flowed into ETFs, putting the vehicles on track for their third straight year of inflows north of $200B. The inflows stand in major contrast to either outright net exits or minimal inflows for mutual funds.
- Still, even after doubling AUM since 2011, ETFs account for just 17% of mutual fund assets.
- Interested parties: BLK, WETF, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, EV
Wed, Oct. 5, 11:04 AM
- The mutual fund giant introduces three new funds to its LibertyShares ETF platform - one is an equity product, two are fixed-income, and all three are actively managed.
- The three: Franklin Liberty U.S. Low Volatility ETF (FLLV), Franklin Liberty Investment Grade Corporate ETF (FLCO), Franklin Liberty Short Duration U.S. Government ETF (NYSEARCA:FTSD).
- BEN +2.45% today.
Fri, Sep. 16, 8:31 AM
- Just 9.5% of actively-managed large-cap domestic equity funds beat the S&P 500 in the five year ended August 31 - the worst 5-year record since 1999, according to Morningstar. By comparison, in the five years ended 2010, nearly 50% topped the S&P.
- The lame results haven't gone unnoticed, with investors yanking $422B from roughly 3K mutual funds in the past five years, and putting that money and more into passive vehicles (ETFs).
- In the year ended June 30, 85% of large-cap stock funds, 88% of mid-cap funds, and 89% of small-cap funds failed to match their bogeys. "Pretty appalling," says S&P's Aye Soe. "Given the choppiness in the markets we would have expected the active managers to come out looking better.”
- Interested parties include BlackRock (NYSE:BLK), WisdomTree (NASDAQ:WETF), Franklin Resources (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), Calamos (NASDAQ:CLMS), Invesco (NYSE:IVZ), T. Rowe Price (NASDAQ:TROW), AllianceBernstein (NYSE:AB), Affiliated Managers (NYSE:AMG), Federated Investors (NYSE:FII), Waddell & Reed (NYSE:WDR), Artisan Partners (NYSE:APAM)
Mon, Sep. 12, 4:34 PM
- BEN Aug. 31 total AUM of $740.1B vs. $739.9B a month earlier, $806B a year ago.
- Equity AUM of $306B vs. $305.3B and $330.7B.
- Fixed-income AUM of $290.2B vs. $290.8B and $323.6B.
Wed, Sep. 7, 3:16 AM
- "We think the asset management industry, which was always very fragmented and highly profitable (with low capital intensity), will become much more concentrated over the next five years - especially in U.S. retail with BlackRock (NYSE:BLK) and Vanguard clear winners," Credit Suisse says in a note.
- Firm says it prefers stocks that will exceed net flow/earnings expectations and can maintain or expand valuation levels.
- Top long is AMG, which CS thinks will post much stronger flows in 3Q16, has low exposure to the DOL rule (only 16% of AuM is from U.S. retail and less in retirement), and is one of the cheapest asset managers on cash earnings.
- Also likes LM, which is mainly a valuation and improving earnings visibility play.
- Likes BLK, which is one of the few beneficiaries of the DOL rule (through iShares and Aladdin/Solutions).
- On a longer-term horizon, likes BX (high FE AuM growth + improving cash earnings) and WETF (improving net flows + LT M&A target).
- Says BEN and WDR could both see among the largest net flow impacts from the DOL rule.
Tue, Sep. 6, 4:39 PM