|Bid||22.56 x 1100|
|Ask||22.57 x 800|
|Day's range||22.19 - 22.59|
|52-week range||22.19 - 35.82|
|Beta (5Y monthly)||1.23|
|PE ratio (TTM)||8.98|
|Earnings date||23 Apr 2020 - 27 Apr 2020|
|Forward dividend & yield||1.08 (4.58%)|
|Ex-dividend date||29 Mar 2020|
|1y target est||26.42|
(Bloomberg) -- Benefit Street Partners, the alternative credit manager acquired by Franklin Resources Inc. in 2019, has shut its credit hedge fund after returns slumped.The firm began liquidating its portfolio in September and returned the bulk of the capital by the end of last year, according to a person familiar with the matter. The fund lost 11.2% last year through August and had $575 million in assets at the end of that month, said the person, who asked not to be named. Its assets once peaked at as much as $1 billion.Many credit funds are struggling with yields and default rates near historic lows. The hedge fund industry is also grappling with pressure from investors after years of mediocre returns and hefty fees. Closures have outpaced openings and marquee names including billionaire Louis Bacon have shut funds or returned client capital.A representative for New York-based Benefit Street declined to comment. The firm, run by Thomas Gahan, manages about $27 billion in assets and its credit hedge fund started trading in 2011.Franklin, which has agreed to purchase asset manager Legg Mason Inc., acquired Benefit Street to expand into private credit as the appetite for such strategies intensified. Gahan was named head of alternatives at Franklin Templeton following the close of the acquisition last year.Private credit funds, which have focused on high-yielding strategies like direct lending, have cashed in on the shift to alternative capital providers from banks. As private equity cash piles have grown, such funds have deepened relationships with sponsors, who rely on them to provide capital for buyouts and strategic acquisitions.Benefit Street, established in 2008, focuses on senior secured and subordinated debt as well as liquid and illiquid credit.\--With assistance from Kelsey Butler.To contact the reporter on this story: Melissa Karsh in New York at email@example.comTo contact the editors responsible for this story: Sam Mamudi at firstname.lastname@example.org, Alan Mirabella, Josh FriedmanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
On announcement of the all-cash deal between Legg Mason (LM) and Franklin Resources (BEN), Moody's puts ratings of the former on review and affirms that of the latter.
Franklin Templeton today announced it will close and liquidate Franklin Liberty International Opportunities ETF (FLIO). The liquidation is anticipated to occur on or about March 23, 2020. The firm regularly reviews its investment offerings, ensuring products remain competitive and positioned to meet the evolving needs of investors.
Franklin Resources' (BEN) recently-announced acquisition with Legg Mason (LM) reflects the companies' strategic efforts for business expansion, unlocking growth opportunities.
(Bloomberg Opinion) -- In the asset-management industry, reputation is everything. A mutual-fund manager might have a fantastic strategy, but without a steady stream of cash flowing in to set up the position, returns may come in weaker than expected. That, in turn, could lead some investors to lose confidence that the concept was ever great in the first place.That, in a nutshell, is what happened to Franklin Resources Inc. over the last several years. The company has been stuck near $700 billion in assets under management for the past 18 months, down from a peak of $921 billion in mid-2014, while its competitors have grown steadily. Moody’s Investors Service downgraded Franklin’s credit rating in mid-2018 and last year “expressed concern that Franklin's reputation for global/international strategies and solid relative investment performance has been undermined.” That’s not quite a death knell, but it’s close. Faced with that grim reality, Franklin made the obvious move: It got bigger in a hurry. On Tuesday, it announced an agreement to acquire asset manager Legg Mason Inc. for almost $4.5 billion. The deal would create a $1.5 trillion behemoth whose size trails only BlackRock Inc., Vanguard Group Inc., Fidelity Investments, Capital Group Cos. and Amundi Asset Management among “independent asset managers,” according to Willis Towers Watson data cited by Franklin. It would leap ahead of Invesco Ltd and T. Rowe Price Group Inc. in this arms race. (The ranking format conspicuously excludes investing giants tied to Wall Street banks like Goldman Sachs Group Inc. and JPMorgan Chase & Co., or those affiliated with insurers, like Allianz Group and Prudential Financial.)At first glance, the takeaway is that the entire asset-management industry is consolidating because of the rise in passive, low-cost index funds, and Franklin’s move is just the latest example. While that’s true, the combination of these two firms in particular suggests that in the current investing landscape, fund companies can either choose to be the biggest, or they can elect to remain small, nimble and specialized, but falling somewhere in the middle is purgatory. Neither firm is accustomed to being viewed as a second- or third-tier money manager. After all, Franklin, which leans into its affiliation with one of America’s iconic founding fathers, started in 1947, while Legg Mason’s precursor firm dates back to the 19th century. And yet, both Legg Mason and Franklin have fallen way behind the top firms, and Franklin in particular was at risk of slipping even further away from the next group of asset managers.Franklin’s website declares it’s “a global leader in asset management with more than seven decades of experience.” At what ranking does being a “global leader” no longer hold up? The company clearly wasn’t interested in finding out.With the purchase, Franklin will strike an almost perfect balance between institutional and retail investors, which may help mitigate volatility in fund flows. Notably, it expects to maintain a nearly identical geographic focus, which is important given that some of its flagship offerings are worldwide in scope. For example, the $26.3 billion Templeton Global Bond Fund holds a large position in Brazil’s bonds, and both Franklin and Legg Mason have a presence in Sao Paulo. Even as active managers grow, they need to retain their identity.The acquisition also braces for an uncertain future. Legg Mason recently made headlines for announcing plans to take a majority stake in Precidian, known for its ActiveShares exchange-traded funds. If successful, the products could upend the mutual-fund industry because they would trade daily and yet require reporting only once a quarter. Analysts have suggested some $7.2 trillion in mutual-fund strategies could work in this format. Franklin took too long to get on the ETF bandwagon years ago and appears eager not to make a similar misjudgment.Now, one big move probably won’t be enough to bring Franklin back to its glory days. But by combining with Legg Mason, it at least has more than a puncher’s chance to reclaim its place as a leader in active management. Traders certainly seem optimistic: Franklin’s shares rose as much as 13.3% on Tuesday to $27.60, the biggest intraday jump since November 2016.The onus is now on Franklin’s fund managers to live up to their reputations. If there were any malaise in the air over in San Mateo, Calfornia, about the company’s future, management has alleviated it for now. Franklin is back in the game.(Corrects the size of the combined entity in the third paragraph. )To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Franklin Limited Duration Income Trust [NYSE American:FTF], a closed-end investment company managed by Franklin Advisers, Inc., announced today a distribution of $0.0838 per common share, payable March 13, 2020, to shareholders of record on February 28, 2020 (Ex-Dividend Date: February 27, 2020).
Franklin Universal Trust [NYSE:FT], a closed-end investment company managed by Franklin Advisers, Inc., announced today a distribution of $0.0320 per share, payable March 13, 2020, to shareholders of record on February 28, 2020 (Ex-Dividend Date: February 27, 2020).
(Bloomberg) -- Franklin Resources Inc. and Legg Mason Inc. helped pioneer asset management in the 20th century. On Tuesday, the venerable but fading names said they will combine in an effort to compete, as low-cost index funds upend their industry.In an era when traditional stock-pickers are under intensifying pressure, San Mateo, California-based Franklin agreed to buy Legg Mason to create a firm with a combined $1.5 trillion in assets.The deal, valued at nearly $4.5 billion, shows how much the fund industry has transformed since the two companies were founded -- Franklin started in 1947 and Legg Mason’s precursor firm began in 1899. Customers are focusing more than ever on costs for money management, and a few large index fund managers dominate the field in managed assets globally.Franklin’s shares were up 5.5% at 11 a.m. in New York, while Legg Mason’s stock rose 24%.Merger activity in the asset management world has been increasing in recent years. Invesco Ltd. bought OppenheimerFunds from Massachusetts Mutual Life Insurance Co. in 2018, while both Janus Henderson Group Plc and Standard Life Aberdeen Plc were formed in mergers in 2017. In the brokerage sector, Charles Schwab Corp. agreed to buy TD Ameritrade Holding Corp. for about $26 billion in November.Activist PressureThe announcement comes less than a year after activist investor Trian Fund Management took a 4.5% stake in Legg Mason, enough to secure its founder Nelson Peltz a position on the board.Just days later, the fund manager said it would cut about 12% of its staff and reduce its executive committee to four from eight members. Peltz said at the time his three top priorities were “significantly reducing costs, driving revenue growth organically and through acquisition, and increasing profitability.”Tuesday’s announced transaction values Legg Mason at $50 per share, a 23% premium to the Baltimore-based company’s share price Friday. Franklin will assume about $2 billion in Legg Mason debt, according to the statement. Both firms have seen their assets under management fall from their highs -- Legg Mason’s peaked in 2007.“This is a landmark acquisition for our organization that unlocks substantial value and growth opportunities driven by greater scale, diversity and balance across investment strategies, distribution channels and geographies,” Greg Johnson, executive chairman of the board of Franklin Resources, said in a statement.Executives from the two firms said in a call following the announcement that they would keep the independence of Legg Mason’s network of affiliate asset managers.The deal could help address areas where Franklin has gaps, Wells Fargo Securities analysts led by Christopher Harris said in a note. They mentioned fixed income and alternatives.Indexing RiseOver the past decade, U.S. equity index mutual funds and ETFs have taken in about $1.6 trillion, while their active counterparts lost approximately $1.4 trillion, according to data from the Investment Company Institute and Bloomberg Intelligence.The flood of money out of active and into passive funds has sent fees grinding lower, led to thousands of job cuts and forced large-scale consolidation.Among other changes, Banco de Sabadell SA agreed in January to sell its asset-management business to Amundi SA for 430 million euros ($466 million), while GAM Holding AG considered a sale of the company last year. On Monday, Jupiter Fund Management Plc agreed to acquire rival U.K. asset manager Merian Global Investors.“Investors are broadly moving from active to passive, weighing on flows and margins for these managers,” said Alison Williams, an analyst at Bloomberg Intelligence. “Technology and compliance needs are increasing spending for all managers, with smaller ones finding it tougher to spend what is needed to compete.”(Updates with details on assets in eighth paragraph, executive comments in 10th paragraph)\--With assistance from Suzy Waite and John Gittelsohn.To contact the reporters on this story: Annie Massa in New York at email@example.com;Ed Hammond in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Mamudi at email@example.com, Liana BakerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Franklin Resources, Inc. (the "Company") [NYSE:BEN], a global investment management organization operating as Franklin Templeton, today announced that it has entered into a definitive agreement to acquire Legg Mason, Inc. [NYSE:LM] for $50.00 per share of common stock in an all-cash transaction. The Company will also assume approximately $2 billion of Legg Mason’s outstanding debt. The acquisition of Legg Mason and its multiple investment affiliates, which collectively manage over $806 billion in assets as of January 31, 2020, will establish Franklin Templeton as one of the world’s largest independent, specialized global investment managers with a combined $1.5 trillion in assets under management (AUM) across one of the broadest ranges of high-quality investment teams in the industry. The combined footprint of the organization will significantly deepen Franklin Templeton’s presence in key geographies and create an expansive investment platform that is well balanced between institutional and retail client AUM. In addition, the combined platform creates a strong separately managed account business.
The Franklin Limited Duration Income Trust [NYSE:FTF] (CUSIP 35472T101) has declared a dividend of $0.0834 per common share payable February 14, 2020, to shareholders of record as of January 31, 2020. It is currently estimated that $0.0445 per share represents net investment income and $0.0389 per share represents return of principal.
Franklin Resources, Inc. (the "Company") [NYSE:BEN] announced a quarterly cash dividend in the amount of $0.27 per share payable on April 13, 2020 to stockholders of record holding shares of common stock at the close of business on March 31, 2020. The quarterly dividend of $0.27 per share is equivalent to the dividend paid for the prior quarter and represents a 4% increase over the quarterly dividend paid for the same quarter last year.
Franklin Resources' (BEN) preliminary assets under management (AUM) of $688 billion for January edge down from the prior month, impacted by negative market returns.
Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today reported preliminary month-end assets under management of $688.0 billion at January 31, 2020, compared to $698.3 billion at December 31, 2019. Assets under management declined as net new outflows moderated and market returns were negative. Preliminary average assets under management for the quarter, through January 31, 2020, were $693.1 billion.
The traditional approaches to retirement planning are longer covering all expenses in nest egg years. So what can retirees do? Thankfully, there are alternative investments that provide steady, higher-rate income streams to replace dwindling bond yields.
Templeton Global Income Fund [NYSE: GIM] today announced a monthly distribution from net investment income of $0.0294 per share, payable on February 28, 2020, to shareholders of record on February 18, 2020 (Ex-Dividend Date: February 14, 2020).
Templeton Emerging Markets Income Fund [NYSE: TEI] today announced a monthly distribution from net investment income of $0.0610 per share, payable on February 28, 2020, to shareholders of record on February 18, 2020 (Ex-Dividend Date: February 14, 2020).
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Franklin's (BEN) first-quarter fiscal 2020 (ended Dec 31) earnings highlight higher revenues, escalating expenses and overall net outflows.