Franklin Resources Sees Asset Management Business Rebound

Franklin Resources' (BEN) asset management business is experiencing a potential turning point, with Morgan Stanley upgrading the company to Equal Weight from Underweight in May 2026. The analysts at Morgan Stanley have identified early signs of a turnaround, including nine consecutive quarters of inflows excluding Western outflows. This trend is supported by the significant increase in total assets under management in April 2026, which rose by 15% compared to the same period last year.

The company's efforts to diversify into alternative investments and strengthen its global presence are likely contributing to this turnaround. Franklin Resources has been actively expanding its business through acquisitions and partnerships, including the launch of a crypto investment firm and the introduction of an off-exchange institutional collateral program for digital asset trading. These initiatives aim to improve the company's digital asset capabilities and institutional reach.