Franklin Resources on Tuesday reported assets under management of $734.2 billion as of June 30, up 4.4% from the prior quarter and 29% higher than the year before.
The company said its quarter-on-quarter gain was powered by record net inflows of $21.7 billion, up from $8.4 billion for the prior quarter and $18.8 billion for the year-earlier period.
Franklin’s taxable global/international bond strategies accounted for almost all of its inflows for the latest quarter, at $20.5 billion, with hybrid strategies pulling in $1.6 billion; taxable U.S. bond strategies adding $500 million and cash garnering $300 million.
Franklin’s tax-free bond strategies, meanwhile, saw net outflows of $900 million, while the company’s equity strategies, which account for more than 40% of the firm’s overall AUM, saw a net outflow of $300 million.
For the latest quarter, Franklin reported net income of $503.3 million, up marginally from $503.1 million for the previous quarter but up 40% from the year-earlier quarter.
Operating revenues, meanwhile, came to $1.853 billion, up 5.9% from the prior quarter and up 21% from the year before.
Separately, Och-Ziff Capital Management Group reported $29.8 billion in assets under management as of July 1, just more than the $29 billion reported on April 1 but 16% higher than in July 2010, according to Och-Ziff’s second-quarter earnings report on Tuesday.
The year-over-year increase was attributed to performance-related appreciation of $2.7 billion and capital net inflows of $1.6 billion.
The firm also said estimated AUM as of Monday was $29.9 billion.
The firm’s four hedge funds had uneven performance in the second quarter compared with the prior quarter. Net returns for the OZ Global Special Investments Master Fund was 1.83%, down from 4.62%.in the first quarter; OZ Master Fund, -0.03%, down from 3.36%; OZ Asia Master Fund, -0.12%, down from 1.14%; and the OZ Europe Master Fund, -1.64%, down from 3.59%.
Estimated net returns of the four funds for the year to date through July 31 are 3.4% for the OZ Master Fund, 0.2% for the OZ Europe Master Fund, 2.2% for the OZ Asia Master Fund and 6.1% for the OZ Global Special Investments Master Fund.