San Mateo, California-based Franklin Resources'
earnings report was a bright spot in the earnings season for asset managers. Net income for the money manager totaled $261.9 million, or $1.00 diluted earnings per share, up from $0.85 earnings per share in the first quarter and from $0.67 in the same period last year. Analysts' expectations for the company was $0.95 per diluted share.
Assets under management increased 3.2 percent from $412.1 billion to $425.4 billion at the end of the second quarter. Sales totaled $29.7 billion while redemptions were $22.0 billion. Market appreciation added $6.1 billion to assets under management, while reinvested distributions and distributions resulted in net outflow of $517 million.
Domestic retail assets under management were up 3.8 percent to $260.3 billion, making up 61 percent of total assets under management. Institutional and international assets increased two percent to $165.1 billion at the end of the second quarter.
Investment management fees totaled $642 million, up eight percent from the first quarter.
Franklin increased its operating margin to 31 percent from 26 percent the quarter before.
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