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.