Franklin Resources Profit Jumps 31%

San Mateo, Calif.-based Franklin Resources Inc., which markets the Franklin and Templeton mutual funds, said its fiscal fourth-quarter earnings climbed 31% as investment management fees increased.

Net income rose to $199.9 million, or 79 cents a share, in the three months ended Sept. 30, compared with $152.1 million, or 61 cents, a year earlier. That beat the average Wall Street estimate by a penny.

Purchases of Franklin funds exceeded redemptions by $6.6 billion in the quarter, as the funds’ returns overall beat those of some of its biggest rivals. The firm’s bond funds were the best performing among those of the 10 largest fund firms in the quarter, while the company’s stock funds ranked No. 2, according to Bloomberg News data.

The company, the fourth-largest mutual fund manager, said it had $362 billion under management as of Sept. 30, up from $302 billion a year ago.

Franklin shares rose $1.55 to $60.80 on the New York Stock Exchange. The stock is up 17% this year despite negative publicity after the company was implicated in the fund industry’s trading scandal. Franklin recently agreed to pay $55 million to settle federal and state charges that it allowed improper trading in certain funds.