Franklin Templeton Is Betting On Tax Reform -- With House Money

(Bloomberg) -- Franklin Templeton Investments is bullish on U.S. tax reform -- but that’s not just something its advisers are telling clients.

A look at the quarterly earnings report for Franklin Resources Inc., the parent of the global investment firm, makes it pretty clear that view is already influencing its financial planning.

On the conference call, analysts grilled management on whether profits would be brought back to the U.S. from overseas should the potential for tax reform that includes a repatriation holiday meaningfully deteriorate.

In a close vote, House Republicans adopted a budget resolution on Thursday that’s a prerequisite for tax reform by year-end -- just hours after President Donald Trump tweeted, "Do not underestimate the UNITY within the Republican Party!"

To contact the reporter on this story: Luke Kawa in New York at lkawa@bloomberg.net.

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka, Eric J. Weiner

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