Franklin AUM rises 4% in quarter, 17% for year

Franklin Resources reported Friday assets under management of $781.3 billion as of Dec. 31, up 4% from the previous quarter and 17% from the year-earlier quarter.

The quarter increase was due primarily to $24.8 billion in market appreciation in the quarter ended Dec. 31 and $8.7 billion in new assets under management from Franklin's acquisition of K2 Advisors, a hedge fund-of-funds manager, Franklin said in a news release.

Franklin reported net inflows of $300 million in the most-recent quarter, down 90% from the prior quarter, and compared to $15.6 billion in net outflows from the quarter ended Dec. 31, 2011.

Inflows of $6.9 billion into Franklin's fixed-income products in the most recent quarter were almost offset by outflows of $6.4 billion from equities products. Clients also added $500 million to hybrid funds while withdrawing $700 million from money market funds.

Net income was $516.1 million in quarter, up 5% from the prior quarter and up 7% from a year ago.

Operating income was $685.1 million, up 10% from the previous quarter and up 8% over the final quarter of 2011.