Franklin Resources, manager of the Templeton mutual funds, yesterday reported quarterly earnings up 58 percent. But the firm said it was taking a pre-tax charge of $60 million to cover costs related to official investigations into improper trading. The results, which also included a gain from insurance related to the 9.11 attacks, beat analysts estimates as the San Mateo, California-based company took in about $6.5 billion in new investment during the quarter — more than double inflows from a year earlier.
CalPERS has placed Franklin on watch for possible termination and Morningstar has urged investors “proceed with caution” when investing with Franklin.