Baltimore-based T. Rowe Price Group says its quarterly results for the three months ended September 30 included net revenues of $571 million, net income of nearly $175 million, and diluted earnings per share of $0.63.
Investment advisory revenues grew nearly 30 percent, or $108 million, from the 2006 third quarter. And assets under management stood at $396.8 billion as of September 30, up 4.5 percent from June 30, 2007. Net cash inflows from investors totaled $7.2 billion, and net market appreciation and income added nearly $9.8 billion to assets under management during the quarter.
For the first nine months of 2007, assets under management expanded close to 20 percent or $62.1 billion, T. Rowe says. Year-to-date, net cash inflows from investors totaled $24.8 billion and net market appreciation and income added $37.3 billion to assets under management.
The series of target-date retirement funds increased close to 12 percent, or $2.8 billion, during the third quarter to total $27.1 billion. Mutual fund net inflows of $2.2 billion originated in the retirement funds during the third quarter of 2007.
“Looking ahead, despite the recent market turmoil, we remain optimistic about the prospects for stocks over the longer term,” shares T. Rowe Price CEO and President James A.C. Kennedy.
“We believe that the global economy will continue to grow at a reasonable rate and that the weakness in U.S. housing will continue to work its way through the system. Companies producing stable earnings growth will be afforded higher prices.”
John Hancock Funds is offering a new proposal-building tool to financial advisors who register at its website, www.jhfunds.com. Advisors can package John Hancock investments and other value-added material, including Monte Carlo analysis, into investment proposals for clients “in less than three minutes,” the firm says.
“Unlike many web sites of a similar purpose which feature mainly asset-allocation tools, our Proposal Builder focuses on customization combined with sophisticated analysis, yet it is also flexible and streamlined for ease of use,” explains Carey Foran Hoch, head of marketing for John Hancock Funds. “Advisors may personalize each and every part of the proposal with our new tool in order to create a presentation that best reflects a client’s needs. Our new tool is also unique in that its Monte Carlo analysis runs 5,000 simulations covering 15 different asset classes.”
“We expect this to become a major business driver for us for the remainder of 2007 and beyond,” shares Hoch. John Hancock Funds manages more than $59 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors as of June 30.
On October 1, John Hancock Funds re-opened the John Hancock Classic Value Fund (PZFVX) to new investors. It had been closed to new investors since September 18, 2006. Pzena Investment Management manages some $9.9 billion in assets for John Hancock in the Classic Value, Classic Value II, Classic Value Mega-Cap and International Classic Value funds.
Matt Witkos, president of Eaton Vance Distributors, the broker-dealer subsidiary of Boston-based Eaton Vance Corp., has outlined a new management structure that should allow the firm to better serve clients, support expanded product offerings and enhance its distribution capability.
“We have developed a new management structure to support continued growth by strengthening our distribution relationships and facilitating a more coordinated approach to product marketing,” explains Witkos.
Jerome Vainisi will be responsible for sales and national account relationships in the major broker-dealer, or wirehouse, channel. William M. Gillen will head sales and national account relationships for the independent advisor, bank and registered investment advisor channel.
The initiative also combines the functions of the former retail separately managed accounts and alternative investments marketing units into the newly formed Wealth Management Solutions Group, Eaton Vance says. This new group aims to be a resource to financial advisors seeking to help high-net-worth clients address wealth-management issues. The company tapped James R. Durocher to head the new group.
Janet Levaux is the managing editor of Research; reach her at [email protected]