Franklin Templeton stems outflows in March

Franklin Templeton stems outflows in March

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New-York listed fund house Franklin Templeton cut its net outflows in half last month.

Estimates from investment bank Jefferies show the firm’s long-term net outflows decelerated to an estimated $4-6bn in March.

That’s down from a negative $8-11bn figure in February.

Over $20bn fled its mutual funds business alone in the fourth quarter of 2015.

Shareholder concern has focused on several major Franklin funds' exposure to emerging markets.

The firm’s heavy reliance on retail investors, who are quicker to pull their money in volatile markets, has also been a concern.

Announcing its March figures yesterday, the business reported a 4% rise in assets under management to $742.6bn.

Jefferies said on Tuesday that Franklin continues to experience net redemptions "across all segments" with global products collectively remaining the biggest headwind and totalling an estimated $2.5-3bn outflows.

Within domestic products, equities, hybrids, taxable bonds, and muni bonds each outflowed roughly $0.5-1bn.

Invesco

Invesco, whose PowerShares business is the world's fourth-largest ETF provider, also announced its March figures yesterday and reported a 4.6% rise in assets last month to $771.5bn.

Positive market returns and long term inflows of $2-3bn helped drive the uptick, Jefferies said, with the majority of flows last month going into the passive segment.

On the active front, alternatives were notable contributor, with equities mostly offsetting.

The company continues to see demand in Asia for alternatives products, notably global targeted returns and real estate.

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