Franklin Resources on Wednesday reported $586.8 billion in client assets as of March 31, up 6% from the prior quarter and 50% higher than the year before.
The company said in a news release about its first-quarter earnings that it enjoyed record quarterly net inflows for its long-term equity and bond strategies of $17.4 billion, adding to market-related gains of $16.5 billion.
Fixed-income strategies were the principal magnet for those inflows, pulling in a net $17.3 billion, according to financial data on Franklin Resources’ website. Equity strategies, meanwhile, saw net outflows of $500 million, with the difference accounted for by hybrid strategies and cash management flows.
For the quarter, Franklin Resources reported net income of $356.7 million, up a scant 0.3% from the prior quarter but up 222% from the year before.
Operating income for the quarter came to $461.1 million, down slightly from $467 million for the prior quarter but up 106% from the year before.
Also on Wednesday, Invesco reported assets under management of $419.6 billion as of March 31, down 0.8% from the prior quarter but up 21% from the year before.
For the latest quarter, net flows of $3.7 billion into the firm’s long-term bond and equity strategies were more than offset by $10.6 billion in outflows from the company’s money market funds. According to a news release, with market-related gains of $7.8 billion and foreign exchange-related translation losses of $4.4 billion, Invesco’s AUM ended the quarter down $2.5 billion.
Institutional investors accounted for $2.7 billion of Invesco’s $3.7 billion of net inflows for the latest quarter, with flows from retail investors adding $700 million and high-net-worth investors adding $300 million.
By asset class, $2 billion in net flows into fixed-income strategies outpaced the $1.3 billion of flows into equity strategies, while Invesco’s alternative offerings garnered net inflows of $600 million. Balanced funds, meanwhile, pulled in net flows of $100 million, with a negative adjustment of $300 million for the firm’s money market funds.
In a conference call, Martin L. Flanagan, Invesco’s president and CEO, cited his company’s strong, long-term investment performance and its strongest inflows since the fourth quarter of 2000 as evidence that its business remains on track, with the anticipated June 1 close of Invesco’s acquisition of Morgan Stanley’s Van Kampen Investments retail asset management business poised to expand the company’s capabilities.
The company’s net income attributable to common shareholders came to $95 million for the latest quarter, down 14% from the prior quarter but up 209% from the year before.
Total operating revenues, meanwhile, came to $719.1 million, down 3.8% from the prior quarter but up 31% from the year before.