(Reuters) - Franklin Resources (NYSE:BEN), better known as Franklin Templeton, on Tuesday beat estimates for fourth-quarter profit as strong performance of its equity and alternative funds helped counter weakness in its fixed-income business.
On an adjusted basis, the company earned 84 cents per share for the three months ended Sept. 30. Analysts had expected a profit of 59 cents per share, according to LSEG data.
Markets have regained some footing this year on receding concerns of a U.S. recession, boosting assets under management (AUM) as investors seeking higher returns cautiously waded into alternatives like private credit and hedge funds.
Average AUM rose 3% to $1.42 trillion in the quarter, the company said.
That helped soften the hit from the fixed-income unit, which is struggling with a rout in the bond markets following hawkish signals on interest rates from the U.S. Federal Reserve.