Shares of Janus Capital ( JNS) and Franklin Resources ( BEN) moved higher Thursday after the asset managers posted strong growth in assets under management, although Janus reported a 41% drop in quarterly earnings as results were weighed down by charges.

Denver-based Janus earned $10.8 million, or 5 cents a share, in the fourth quarter, down from $18.2 million, or 8 cents a share, a year earlier. Excluding certain items, most notably a goodwill impairment charge at its printing business, Janus' adjusted earnings were $33.3 million, or 16 cents a share, matching the Thomson First Call estimate.

Average assets under management in the fourth quarter rose to $142.6 billion from $135 billion in the third quarter. The company said the higher assets in the fourth quarter reflect long-term net inflows of $4.3 billion, money market net inflows of $500 million and a total of $4.3 billion in market appreciation and fund performance.

For all of 2005, long-term net inflows totaled $2 billion, marking the company's first year with positive flows since 2000.

Janus' quantitative-based INTECH subsidiary continued to be the company's strongest performer, with net inflows of $5.2 billion in the fourth quarter and $16.1 billion for all of 2005. INTECH assets under management at Dec. 31 jumped 73% to $44.7 billion from $25.8 billion at the end of 2004. Excluding INTECH, Janus would have recorded $900,000 in long-term outflows in the quarter.

"I'm pleased with the significant progress the firm made in 2005, particularly the improvement in our flows," said Janus Chairman Steve Scheid in a statement. "Ending the year with positive annual flows for the first time since 2000 is a big step forward." Scheid served as CEO until the end of 2005, and was replaced by Chief Investment Officer Gary Black.

Janus shares recently traded up 30 cents, or 1.4%, to $21.74.

Franklin, meanwhile, reported a 33% jump in its quarterly profit, amid increased demand for its new funds and higher assets under management.

The San Mateo, Calif.-based operator of Franklin Templeton funds reported net income of $318 million, or $1.21 a share, for its first quarter ended Dec. 31. Analysts, on average, projected earnings of $1.12 a share. A year earlier, the company posted a profit of $240 million, or 92 cents a share. Revenue increased to $1.18 billion from $986 million a year ago, topping analysts' forecast of $959.9 million.

Assets under management at Franklin were $464.8 billion at Dec. 31, up from $453.1 billion at Sept. 30 and $402.2 billion at Dec. 31, 2004. Simple monthly average assets under management rose to $453.3 billion from $440.5 billion in the preceding quarter and $381 billion in the same quarter a year earlier, the company said.

Franklin shares recently traded up $3.01, or 3%, to $100.31.

More from Mutual Funds

What is an Expense Ratio and What Does It Mean for You?

What is an Expense Ratio and What Does It Mean for You?

Collaboration in the Financial Advisory Sector Is Important

Collaboration in the Financial Advisory Sector Is Important

What the Coming S&P Sector Changes Mean for Investors

What the Coming S&P Sector Changes Mean for Investors

The Trajectory of Gold Prices Depends on the Strength of the Dollar

The Trajectory of Gold Prices Depends on the Strength of the Dollar

One Surprising Winner From Facebook's Stock Meltdown After Earnings

One Surprising Winner From Facebook's Stock Meltdown After Earnings