Franklin Resources Inc., parent to Franklin Templeton Investments, reported net income of $118.5 million on revenues of $618.2 million for the quarter ended December 31, 2001. (All figures in US dollars.)

These results compare with net income of $83.9 million on revenues of $603.9 million in the preceding quarter and net income of $149.5 million on revenues of $564.1 million in the comparable quarter a year ago. Operating results for Fiduciary Trust Company International, the company’s recently acquired subsidiary, are included as of April 10.

Revenues were up this quarter as compared to last quarter as a result of higher underwriting and distribution fees and banking/finance segment income. Operating expenses were down this quarter as compared to last quarter principally due to compensation and benefits and other expenses in the current quarter, a decrease in advertising and promotion, lower amortization of intangible assets, and a net charge related to the events of September 11.

As of December 31, assets under management by the company’s subsidiaries were $266.3 billion, as compared to $246.4 billion last quarter and $226.9 billion at this time last year. Equity assets now comprise 53% of total assets under management as compared to 51% last quarter and 65% at December 31, 2000. Fixed income assets now comprise 30% of total assets under management, as compared to 32% last quarter and 29% at the same time last year. Hybrid assets now account for 14% of total assets under management, as compared to 15% last quarter and 4% at the same time last year.

Charles Johnson, chairman and CEO of Franklin Resources stated, “This has been a very positive quarter. We posted the strongest net inflows since March 1998, and we continue to see excellent investment performance across all asset classes. These leading indicators are very encouraging. Additionally, we implemented several cost control measures and we will continue to focus on costs while investing strategically to grow the company.”