* Profit $2.12/share vs Street view $2.04
* Net new flows $4.8 bln vs. $21.7 bln a year ago
* Shares up 2 pct
July 30 Franklin Resources Inc posted
higher-than-expected quarterly earnings on Monday a s the money
manager mai ntained its steady investment performance record.
Shares in the San Mateo, California , company were up 2
p ercent to $114.4 6 in m orning tr ading, d espite lower inflows of
new cash from investors during the quarter.
"(W)e look for BEN to continue to take market share ,
reflecting strong long-term investment performance track
records" and other factors, Sandler O'Neill analyst Michael Kim
wro te in a note to investors.
Nomura analyst Glenn Schorr wrote in another note, "We think
the positives . .. a ll outweigh the issues and the stock should
On an asset-weighted basis, Franklin Resources reported that
aside from some equity products, all categories of money it
manages were in the top two quartiles of relative performance as
tracked by Lipper, a Thomson Reuters unit, over the three- a n d
five-year periods ending June 30.
Speaking on a pre- recorded conference call, Franklin
Resources Chief Executive Greg Johnson called the A pril-June
period "a nother quarter of strong results despite persistent
global market headwinds."
He said the company's flagship Templeton Global Bond Fund
had s mall net outflows f rom both its U.S. and European versions
during the quarter.
Inflows excluding reinvested distributions, or net new
flows, t o taxable global fixed-income funds were $2.4 billion in
the quarter, Franklin Resources said.
For the fiscal third quarter ended June 30, the company
reported net income of $455.3 million, or $2.12 per share,
compared with $503.3 million, or $2.26 per share, a year
Analysts surveyed by Thomson Reuters I/B/E/S had expected
$2.04 per share.
Operating revenue fell to $1.78 billion from $1.85 billion.
Assets under management slipped to $707.1 billion at June 30
from $725.7 billion at March 31 and $734.2 billion at June 30,
The asset decline resulted from market depreciation of $22.5
billion, partly offset by net new flows of $4.8 billion from
clients, Franklin Resources said.
The net new flows figure -- a crucial measure for money
managers -- fell from $5.6 billion in the prior quarter and
$21.7 billion a year earlier.