Franklin Resources managed $715.2 billion as of June 30, the third quarter of the company's fiscal year, up 0.4% from March 31 and down 1.2% for the year, showed the firm's earnings report issued Tuesday.
Total net outflows from Franklin's investment strategies slowed to $5.4 billion in the quarter ended June 30 from $6.3 billion in the previous quarter and net outflow of $12.1 billion in the year-earlier quarter.
The earnings report showed net market appreciation of $8.3 billion in the quarter, compared with net appreciation of $42.3 billion in the prior three-month period vs. net market losses of $11.1 billion in the second quarter of 2018.
Combined net outflow from Franklin's U.S. and international institutional investors totaled $4 billion in its third quarter, down from both the $6.6 billion net outflows in the quarter ended March 31 and $5.7 billion in the three months ended June 30, 2018.
In the report, Franklin attributed lower net outflows overall in the quarter to higher institutional sales in the U.S. and internationally of $6.5 billion compared with $4.5 billion in the previous quarter and $7.1 billion in the quarter ended June 30, 2018.
Jennifer Johnson, Franklin's president and chief operating officer, said in a call with analysts Tuesday that the firm's institutional new business pipeline is strong. "We are very pleased with the response in the market," she said, adding that the firm has had "some big wins" from institutional investors into separately managed accounts.
Ms. Johnson referred to two mandates totaling $2 billion which were funded by non-U.S. institutions in the second quarter. The firm's hedge funds-of-funds unit, K2 Advisors, also gained "a big win" in the quarter, Ms. Johnson said. She did not identify the new investors.