Franklin Resources Beats Second-Quarter Views

Profits jump 30% on year, helped by stronger sales of domestic and international equity funds.
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Franklin Resources' (BEN) - Get Report second-quarter profits rose 30%, helped by strong sales of its domestic and international equity funds.

The money manager's net income rose to $479.8 million, or $1.91 per diluted share, from $371.4 million, or $1.41 per diluted share, a year earlier.

The results beat expectations, as measured by analysts polled by Thomson, by 6 cents a diluted share.

Revenue rose to $1,639.8 million from $1,317.3 million over the same period.

Assets under management by the company's subsidiaries were $624.0 billion at June 30, 2007, up $48 billion from the end of March and $133.9 billion at March 31, 2007 and $490.1 billion at the end of June 2006.

Investors added a net $15.9 billion during the most recent quarter, up from $10.9 billion in the first quarter and just $1.3 billion in the second quarter of 2006.

Equity assets comprised 60% of total assets at the end of June, unchanged on both the quarter and the year; fixed-income assets comprised 21% of total assets, down from 21% a year earlier; and hybrid assets accounted for 18% of assets, up from 17% a year earlier.