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Why Franklin Resources Jumped 11.1% in December

What happened

Shares of Franklin Resources (NYSE: BEN) rose 11.1% in December, a rally that began just before Thanksgiving as the asset management industry consolidated and got ready for a new worldwide competitive race.

So what

Franklin Resources kicked off the escalation after it completed its acquisition of Legg Mason for $4.5 billion in August that brought its combined assets under management to $1.5 trillion. It was followed by Charles Schwab buying TD Ameritrade, Eaton Vance buying Water Oak Advisors, and BlackRock acquiring Aperio Group.

Image source: Getty Images.

In December, it then launched a new, turnkey robo-advisor service called Tango, a digital wealth management tool for advisors that has the potential to be popular with advisors underserved by typical custodians.

Using machine learning and proprietary algorithms, Tango will automate the creation of financial plans for investors while helping advisors by implementing goals-based decision-making capabilities.

BEN data by YCharts

Now what

The markets are enthused by Franklin Resources' potential, and sees further growth for itself. This Dividend Aristocrat also announced its quarterly dividend (which currently yields 4.5% annually) will rise 4% to $0.28 per share.

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Rich Duprey owns shares of Franklin Resources. The Motley Fool recommends Charles Schwab. The Motley Fool has a disclosure policy.


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