SAN MATEO, Calif. (AP) -- Investment manager Franklin Resources Inc. said Monday that its fiscal third-quarter profit dropped 9.5 percent as its assets under management declined.
The San Mateo-based company, which operates as Franklin Templeton Investments, reported net income of $455.3 million, or $2.12 per share, for the three months ended June 30, down from $503.3 million, or $2.26 per share, in the same quarter last year.
Revenue fell 3.8 percent to $1.78 billion from $1.85 billion a year earlier.
Franklin Resources' assets under management fell 3.7 percent to $707.1 billion from $734.2 billion in the third quarter of 2011. The company said the decline in the stock market's value over the period was the primary reason. At the same time, net new flows, or money coming in to the company's funds from investors compared with money going out, plummeted 78 percent to $4.8 billion from $21.7 billion.
Shares of Franklin Resources rose $2.91, or 2.6 percent, to $115.12 in afternoon trading. The shares have traded between $87.71 and $129.16 in the past 52 weeks.