Franklin Resources Inc. reported lower revenues for its first fiscal quarter, ended Dec. 31, despite a rebound in assets under management.
The San Mateo, Calif., mutual fund company reported operating revenues of $567.7 million for the quarter, down from $598.6 million in the previous quarter and $632.4 million in the first quarter of fiscal 1998.
Franklin had previously announced that it expected disappointing numbers for the quarter because of a shift in assets from equity mutual funds and toward less-profitable fixed-income funds.
The company's assets under management rose to $220.2 billion in the quarter, up almost $12 billion from the previous quarter, but still below the $221 billion a year earlier.
The asset base had shrunk largely because of the poor performance of Franklin's many overseas mutual funds.
Net income was $68.5 million, including a $58 million restructuring charge associated with combining the company's far-flung back-office operations.
Earnings were down from $130.5 million in the previous fiscal year's first quarter and $112.3 million in the fiscal fourth quarter.