T. Rowe Price said it had net revenues of $736.8 million, net income of $206.8 million, and diluted earnings per common share of $.79, in the second quarter vs. year-ago net revenues of $713.7 million, net income of $204.7 million and diluted earnings per common share of $.76.
Investment-advisory revenues for the most-recent period grew by $18.3 million to $630.0 million from the comparable 2011 period, and average assets under management were up $23.4 billion, or 4.5%. Total assets under management were $541.7 billion as of June 30, a drop of $13.1 billion from $554.8 billion on March 31. Net cash inflows in the second quarter of 2012 were $4.7 billion, including $2.8 billion in the target-date retirement portfolios; these were offset by $17.8 billion in market depreciation.
Assets in the second quarter included $321.7 billion in T. Rowe Price mutual funds distributed in the United States, and $220.0 billion in other managed-investment portfolios. The firm’s target-date retirement portfolios had assets of $79.0 billion, of which $71.2 billion were in target-date retirement funds and $7.8 billion in target-date retirement trusts.
“The renewed political and economic uncertainties have led to another round of retrenchment by consumers and corporations around the globe, as well as by investors,” said CEO and President James A.C. Kennedy, in a statement.
“Although investors remain cautious, we encourage them to look beyond the headlines and focus on the longer term,” Kennedy explained. Though there do not seem to be any “easy choices for income-oriented investors, yields on certain riskier fixed-income securities remain attractive given economic expectations and near record-low yields for U.S. Treasuries,” he noted.
The Baltimore-based fund company says that 73% of T. Rowe Price mutual funds outperformed their comparable Lipper averages on a total-return basis for the three-year period ended June 30, while 85% outperformed for the five-year period. Close to 75% of assets under management were in T. Rowe stock, bond and blended-asset funds that had an overall Morningstar rating of four or five stars in the second quarter.
“While client cash flows across our diversified distribution channels may vary, we are pleased that in today’s volatile environment our strong long-term performance and investment solutions, such as our target-date retirement portfolios, continue to provide value to clients and generate healthy net inflows overall,” shared Kennedy.
Investment advisory revenues from T. Rowe Price mutual funds distributed in the United States were $434.3 million, a jump of $16.2 million, or 4%, from the comparable 2011 quarter. Average mutual fund assets under management in the second quarter of 2012 were $318.3 billion, an increase of 5% from the average for the second quarter of 2011.
Net cash inflows during the second quarter of 2012 were $6.3 billion, including $5.3 billion into stock and blended-asset funds and $1.2 billion into bond funds. Money-market funds had net outflows of $.2 billion, and lower market valuations decreased mutual fund assets under management by $10.0 billion during the period.