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Stock Markets March 5, 2026 10:03 AM

Franklin Resources Posts Strong February AUM, Shares Tick Higher

Preliminary assets under management rose on market gains and net inflows; analyst keeps Buy rating and $36 target

By Nina Shah BEN
Franklin Resources Posts Strong February AUM, Shares Tick Higher
BEN

Franklin Resources reported preliminary assets under management of $1.74 trillion as of February 28, 2026, up from $1.71 trillion at January 31, 2026. The firm attributed the increase to favorable market conditions and roughly $10 billion in long-term net inflows, while a Western Asset Management outflow of about $1 billion reduced the long-term inflow figure. The stock rose about 2% on the update and an analyst maintained a Buy rating with a $36 price target.

Key Points

  • Franklin Resources' preliminary AUM rose to $1.74 trillion at February 28, 2026, from $1.71 trillion at January 31, 2026, driven by market appreciation and roughly $10 billion in long-term net inflows.
  • Excluding Western Asset Management's approximately $1 billion of long-term net outflows, preliminary long-term net inflows totaled about $11 billion; Western Asset Management's AUM rose to $221 billion aided by market gains and $5 billion in cash management inflows.
  • The update influenced markets, with BEN shares rising about 2% and an analyst from TD Cowen maintaining a Buy rating and a $36 price target.

Shares of Franklin Resources (NYSE:BEN) rose approximately 2% on Thursday after the asset manager released preliminary assets under management figures for February 2026 that exceeded analyst expectations.

The firm reported preliminary AUM of $1.74 trillion as of February 28, 2026, up from $1.71 trillion at January 31, 2026. Company commentary attributed the month-over-month increase to positive market conditions and long-term net inflows totaling around $10 billion. When excluding activity at Western Asset Management, preliminary long-term net inflows were approximately $11 billion, since Western Asset Management experienced about $1 billion in long-term net outflows.

Asset class totals reflected broad-based gains across equities, fixed income, alternatives, multi-asset, and cash management:

  • Equity assets: $721.8 billion, up from $709.3 billion the prior month.
  • Fixed income: $443.9 billion, up from $440.7 billion.
  • Alternative assets: $278.4 billion, up from $275.3 billion.
  • Multi-asset: $210.7 billion, up from $204.5 billion.
  • Cash management: $80.9 billion, up from $76.1 billion.

The company's Western Asset Management subsidiary reported preliminary AUM of $221 billion at February 28, 2026, versus $216 billion at January 31, 2026. The subsidiary's AUM growth reflected positive market impact and cash management net inflows of $5 billion, which were partially offset by the reported long-term net outflows.

"Post 3/4 market close, BEN announced 2/28 AUM that handily exceeded our forecast, led by particularly strong, seemingly well diversified LT NNA, likely without contribution from Lexington XI (secondaries). WAMCO metrics also remain favorable, with AUM/flows also running better than modeled." - Bill Katz, TD Cowen

TD Cowen analyst Bill Katz reiterated a Buy rating on Franklin Resources and kept a $36 price target following the preliminary figures.

The preliminary AUM release highlights continued inflows into long-term strategies alongside gains driven by market performance. The update also underscores differing flows within business units, with Western Asset Management showing a mix of cash management inflows and long-term outflows that partially offset its overall AUM gains.

Investors and industry observers will likely watch subsequent official reporting for confirmation of the preliminary numbers and for further detail on the drivers of long-term net flows.

Risks

  • A portion of the AUM growth was attributed to positive market conditions, indicating that a reversal in markets could reduce asset values and AUM growth - this impacts asset managers and investment markets.
  • Western Asset Management reported roughly $1 billion in long-term net outflows, highlighting potential concentration of redemption risk within a subsidiary - this affects fixed income management and institutional client segments.
  • Uncertainty around contributions from specific fundraising or secondary vehicles was noted by the analyst, who suggested the strong long-term net new assets may have been achieved without contribution from Lexington XI (secondaries), indicating variability in sources of inflows - this impacts fund-raising and alternative asset strategies.

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