DOW JONES NEWSWIRES
Franklin Resources Inc. (BEN) fiscal fourth-quarter earnings
rose 22% amid investment gains and as assets under management
increased.
An improving market has helped raise asset levels and bring
investors back into the market. Rival fund operators T. Rowe Price
Group Inc. (TROW), Invesco Ltd. (IVZ) and Janus Capital Group Inc.
(JNS), which reported earnings last week, showed signs the sector
is stabilizing, with assets under management increasing
sequentially.
For the quarter ended Sept. 30, Franklin Resources reported a
profit of $367.4 million, or $1.60 a share, up from $300.5 million,
or $1.28 a share, a year earlier.
The latest period included $87.2 million net in investment and
other income, as well as $31.9 million in sponsored investment
product gains, while the prior year included gains of $77.8 million
and a loss of $35.5 million, respectively.
Revenue decreased 6% to $1.24 billion as investment management
fees fell 12%.
Analysts polled by Thomson Reuters most recently forecast
earnings of $1.33 on revenue of $1.22 billion.
Operating margin edged down to 31.1% from 31.2%.
Assets under management rose to $523.4 billion as of Sept. 30
from $451.2 billion at June 30, and $507.3 billion a year earlier.
Net fund inflows were $12.2 billion in the quarter.
Shares closed Monday at $113.02 and didn't trade premarket. The
stock has more than doubled in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com;