July 26 (Reuters) - Investment manager Franklin

Resources ( BEN ), better known as Franklin Templeton, beat

estimates for third-quarter profit on Friday owing to strength

in its equity products and higher fees.

WHY IT'S IMPORTANT

Hopes of a soft landing for the economy and enthusiasm

surrounding artificial intelligence-related stocks propelled an

equity market rally in 2024, helping managers who invest in such

products rake in the gains.

BY THE NUMBERS

The company's assets under management in equity investment

products grew to $595 billion in the quarter ended June 30, from

$458 billion a year earlier, boosting Franklin's total AUM by

15%, to $1.65 trillion, at the end of the reported quarter.

In the San Mateo, California-based investment manager's

fixed-income products, AUM grew nearly 12%. Such products

typically fetch lower fees than equity and alternatives for

Franklin.

Its total investment management fees, the largest

contributor to total operating revenue, grew to $1.69 billion in

the third quarter, from $1.61 billion last year.

The company's total operating revenue in the three months

ended June grew 8%, to $2.12 billion.

For the three months ended June 30, the asset manager posted

an adjusted profit of $326.4 million, or 60 cents per share,

compared to analysts' estimate of $302.6 million, or 57 cents

per share, according to LSEG data.