Franklin Resources Inc., parent of
Franklin Templeton, yesterday
revealed that its fiscal first- quarter profit fell 4.1 percent because of a global equity bear market and outflows from the firm’s best-selling global bond fund,
Bloomberg reports [
earnings call transcript].
The $57 billion
Templeton Global Bond Fund, which is PMed by
Michael Hasenstab, reportedly suffered redemptions in November and December after three straight years of inflows as clients reacted to slumping performance.
Franklin suffered net redemptions of $15.6 billion in the quarter, with $11.1 billion of that coming from one institutional client, accroding to the press release. In the two previous quarters, Franklin attracted $3.1 billion and $21.7 billion in net deposits.
Net income for the three months ended Dec. 31 declined to $480.8 million, or $2.20 a share, from $501.2 million, or $2.23, a year earlier. The company was reportedly expected to earn $2.09 a share, according to the average estimate of 12 analysts in a Bloomberg survey.
The
Wall Street Journal and
Morningstar also covered Franklin's earnings.  
Edited by:
HFD
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