January 27, 2011

2010 Q4 Earnings: Franklin Resources Profits Rise

Quarterly AUM up 4% over third quarter

Publicly-traded mutual fund company Franklin Resources, Inc. (BEN) announced Thursday it had earned $501.2 million in net income, or $2.23 per share (diluted), on $1.70 billion in revenues for the fourth quarter ended Dec. 31, 2010, versus $372.9 million in net income, or $1.65 per share (diluted), on $1.53 billion in revenues for the third quarter. In the fourth quarter in 2009, net income was $355.6 million, or $1.54 per share (diluted), on $1.38 billion in revenues.

Aggregate assets under management (AUM) for the company grew from $553.6 billion as of Dec. 31, 2009 to $670.7 billion at Dec. 31, 2010. For the quarter, total AUM was up 4% from $644.95 billion in AUM as of Sept. 30.

Equity assets grew to 44% of total AUM at Dec. 31, 2010, versus 43% at Sept. 30, 2010 but were down from 46% at Dec. 31, 2009. Fixed-income assets grew to 39% of total AUM at Dec. 31, 2010 and Sept. 30, 2010, from 34% at Dec. 31, 2009. Hybrid and other assets were 17% of total AUM at Dec. 31, 2010,

The company noted a change in “accounting guidance,” beginning on Oct. 1, 2010, “related to the consolidation of variable interest entities, which resulted in increases to cash and cash equivalents and investments of $1.1 billion and debt outstanding of $1.2 billion at Dec. 31, 2010.” Franklin had total cash, cash equivalents and investments of $8.0 billion at Dec. 31, 2010, versus $6.8 billion at Sept. 30, 2010. Total stockholders’ equity grew to $8.1 billion at Dec. 31, 2010, from $7.7 billion at Sept. 30, 2010. 

Total net inflows were $2.1 billion for the quarter.

Read AdvisorOne's 2010 Q4 earnings calendar for the financial sector for release dates and links to earnings stories.

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