Sterne Agee Comments On Franklin Resources March AUM

Franklink Resources BEN reported March assets under management of $703.5 billion, up 1.4% for the month and 4.9% for the quarter. Sterne Agee had anticipated ending AUM of just over $697 billion. The biggest variance versus Sterne's model was in the Global Equity category where based on the reported figure it appears the sizable institutional outflows that occurred in February did not persist. While the roughly 1% higher than anticipated AUM has no material impact on current quarter estimates, the level of ending AUM does cause Sterne Agee to raise its full year 2011 and 2012 numbers. Sterne's fiscal 2011/2012 estimates increase from $8.46/$9.68 to $8.51/$9.75. On a calendar-year basis its 2011 estimates is $8.59. Sterne Agee has a $150 PT and Buy rating on BEN BEN closed Monday at $124