Franklin's two largest mutual funds are lagging peers for their 1-Yr return. Investors will exit underperforming funds, especially retail clients.
Most of Franklin's fluctuations in Assets Under Management are from capital depreciation and appreciation and not net customer flows. Global asset prices have been weak and may continue to do so with a weakening global economy.
Franklin primarily offers traditional mutual funds. It will lose if consumers choose alternatives such as hedge funds or exchange traded funds.