Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Technology > Investment Platforms > Turnkey Asset Management

T. Rowe Grows Target-Date Funds

By Janet Levaux

X
Your article was successfully shared with the contacts you provided.

T. Rowe Price Group says target-date retirement investment portfolios continue to be a significant source of assets under management for T. Rowe.

During the 2008 fourth quarter, net inflows of $0.7 billion originated in target-date retirement portfolios. Assets in target-date investment portfolios were $26.0 billion at December 31, 2008, and now account for 9.4 percent of the firm’s AUM and 15.3 percent of its mutual fund assets.

The group’s results for the full-year 2008 included net revenues of $2.1 billion, net income of $491 million, and diluted earnings per share of $1.82, down $.58 per share from 2007. Assets under management stand at about $277 billion.

This is down 31 percent from the beginning of 2008 as cash inflows from investors of $17.1 billion have been more than offset by market valuation declines, net of income of $140.3 billion, and $.5 billion of fund distributions not reinvested.

Some 78 percent of T. Rowe Price funds surpass their comparable Lipper averages on a total-return basis for the five-year period ended December 31, 2008, at least 67 percent outperforming the average for the three- and 10-year periods, and 54 percent outperforming for the one-year period, the company says.

Net cash outflows to investors in the fourth quarter of 2008 were less than 1 percent of assets under management, or $2.4 billion. Lower market valuations, net of income and fund distributions not reinvested, reduced assets under management by $66.3 billion in the fourth quarter of 2008.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.