Franklin Resources Inc saw its fiscal second quarter earnings drop 11%, marking this the first decrease in three years. The Franklin Templeton Investments subsidiary explains that the decline is a result of bringing back profit from oversees and decreasing the value of assets at one of the firm's trust units, according to the Los Angeles Times.
The firm's net income went down to $196.5 million in the quarter ending March 31 from $221.3 million in same period a year earlier.
Rival asst management firms, including AllianceBernstein and T. Rowe Price, reported higher earnings as a result of strong inflows. Alliance reported it had inflows of $12 billion in funds and accounts. T. Rowe Price reported $9.6 billion in net new money.
"This was a slower quarter, but we don't think that it is indicative of the future," said Paul Welch, an analyst at Chicago-based Ariel Capital Management. "They have a premier global business."
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