The firm also cut 2015 earnings estimates to $3.61 from $3.68 per share, with 2016 earnings estimates lowered to $3.57 from $3.60 per share.
Shares of Franklin Resources are declining 1.25% to $45.93 in afternoon trading on Thursday.
Yesterday, Franklin Resources posted its 2015 third quarter financial results with earnings of $0.82 per share on revenue of $2.00 billion. This compares to earnings of $0.92 per share on revenue of $2.13 billion for the same period one year ago.
The firm noted that third quarter earnings results missed consensus of $0.88 per share, and its estimate of $0.89 earnings per share.
"We believe the near-term net flow outlook remains challenging given the possibility for Fed liftoff along with global market volatility is hampering the sales effort in many fixed income areas, and relative performance has weakened in some global equity and income products," Deutsche Bank analysts said.
Franklin Resources, based in New York City is an investment management organization offering investment management and related services
Separately, TheStreet Ratings team rates FRANKLIN RESOURCES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRANKLIN RESOURCES INC (BEN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, expanding profit margins, growth in earnings per share and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.