Jefferies Reports Weak Equity Flows on Franklin Resources (BEN)

Jefferies is out with its report on Franklin Resources BEN after BEN reported relatively weak equity flows. In a note to clients, BEN writes, "BEN reported Nov 30 total AUM of $642.3bn, down $22.0bn or 3.3% from Oct 31 levels. The $22.0bn includes the previously announced redemption of approx. $12bn in assets from the hybrid category. Excluding this, the decline in AUM was 1.5% and reflects a combination of negative market performance, negative currency impacts (est. to be $3bn), modest equity outflows, and positive fixed income flows. More specifically, equities were down 2.4% to $276.0bn, Hybrids were up 0.6% to $100.8bn (excluding the redemption), and fixed income was down 1.0% to $258.7bn." Jefferies has a Hold rating and $110 price target on BEN. BEN is trading at $118.30