Net income in the quarter that ended Dec. 31, the first of its fiscal year, totaled $118.5 million, the San Mateo, Calif., mutual fund company reported last week. That was 41% more than in the immediately preceding quarter, though down 21% from a year earlier.
Net flows of new money into Franklin and its subsidiaries jumped to $6 billion, from $1.8 billion in the preceding quarter and $2.6 billion in the year-earlier one.
The new figure was higher than in any quarter since January-March 1998, said Martin Flanagan, chief financial officer, during a conference call Thursday.
Behind the improvement, Flanagan said, was the strong performance of Franklins mutual funds in the quarter ended in December. Eighty-five percent of them ranked in the top two quartiles of their Lipper Inc. peer groups, he said.
"I cant remember a time when weve had such excellent, strong relative performance," Flanagan said.
Bruce Brewington, a research analyst at
Flanagan said the salary and expense reductions instituted in November were not permanent, since the company recognizes the need to keep its best employees. "At the end of the day we need the best people here at this organization."
