By Adria Calatayud

 

Franklin Resources Inc. (BEN) said Tuesday that third-quarter profit fell 39%, hit by a tax charge after a revision of its estimated transition expense on the back of the U.S. tax reform of 2017, and a lower margin.

The California-based investment manager earned a net profit of $245.9 million, or 48 cents a share, in the quarter ended June 30 compared with $402.0 million, or 75 cents, for the same period last year.

Operating revenue fell to $1.48 billion in the quarter from $1.56 billion a year earlier. Third-quarter operating margin was 25.4%, down from 32.3% in the year-earlier period, Franklin said.

At June 30, assets under management stood at $715.2 billion, up $2.9 billion over the quarter, as a $8.3 billion market gain was partially offset by net outflows of $5.4 billion.

 

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

 

(END) Dow Jones Newswires

July 30, 2019 09:02 ET (13:02 GMT)

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