JHG - Franklin Resources: Betting On Alternatives

• 2Q22 net flows were disappointing, and investors are likely to be losing confidence that BEN can achieve positive inflows in the near future.
• Soft investment performance numbers in the key Equity and Fixed Income franchises point to ongoing challenges for net flows.
• BEN has made a big strategic bet on Alternatives and the company appears to be hoping that success in this area can prop up weaker performing segments.
• The risk that BEN could be a value trap is growing, however, at present, the stock appears cheap enough to justify a retained BUY rating.

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