Franklin Resources reported Thursday that its net income in the second quarter was $371.4 million, or $1.41 per diluted share, up 42% from $261.9 million, or $1 per diluted share, in the second quarter of 2005.
Flows to and strong performance in its international funds drove most of that growth, the company said. Over the past year, assets in its international funds have increased 25%.
"The year over year results look great, and much was driven by the fact that Franklin had a fabulous fourth quarter when a lot of folks were moving money abroad," Morningstar analyst Jeffrey Ptak told Morningstar.
And even though international funds have performed poorly in recent weeks, Ptak noted that the broad array of funds that Franklin offers should buffer it in the coming quarters.
Franklin's investment management fees increased 22% to $786 million, fueling a 19% increase in revenues to $1.32 billion.
"They offer so many things, and they do it so well. That's why we think Franklin is one of the highest quality asset managers," he added.
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