The T. Rowe Price Group says it had net revenues of $498.1 million and net income of $132.9 million in the third quarter of 2009 vs. net revenues of $554.8 million and net income of $152.8 million in the year-ago period. Investment advisory revenues fell 10.4 percent, or $48.4 million, from the comparable 2008 quarter.
Assets under management increased from $315.6 billion at June 30, 2009, to $366.2 billion at September 30, including $218.4 billion in the T. Rowe Price mutual funds distributed in the United States and $147.8 billion in other managed investment portfolios.
Net cash inflows in the third quarter 2009 totaled $7.4 billion, the company says, and higher market valuations and income added $43.2 billion to assets under management in the 2009 quarter. Investors outside the United States now account for 11 of the firm’s AUM.
“The firm’s investment advisory results relative to our peers remain strong, with 87 percent of the T. Rowe Price funds across their share classes surpassing their comparable Lipper averages on a total return basis for the 5-year period ended September 30, 2009, 83 percent outperforming for the three-year period, and at least 79 percent outperforming for the one- and 10-year periods,” says James A.C. Kennedy, the company’s chief executive officer and president.
In addition, results for the first nine months of 2009 include net revenues of more than $1.3 billion and net income of $281.1 million. Assets under management have increased 32.5 percent from the beginning of 2009, with net cash inflows from investors totaling $15.4 billion and market appreciation and net income adding $74.5 billion during the year-to-date period.
Mutual fund assets at September 30, 2009 were $218.4 billion, an increase of 15.6 percent or $29.4 billion from the end of June 2009, and 6.9 percent or $14.1 billion higher than the third quarter 2009 average.
Net inflows to the mutual funds were $2.6 billion during the third quarter of 2009, which included $3.5 billion to bond funds that were offset by $0.9 billion of net outflows from money market funds. The Short Term Bond, New Income and International Bond funds together added $2.0 billion of net inflows. Higher market valuations and income increased mutual fund assets under management by $26.8 billion during the third quarter of 2009.
During the third quarter of 2009, target-date retirement investment portfolios had net inflows of $1.3 billion and AUM of $39.7 billion at September 30, 2009, accounting for nearly 11 percent of the firm’s assets under management and 17.5 percent of its mutual fund assets.
“T. Rowe Price stock, bond and blended asset funds that ended the quarter with an overall rating of four or five stars from Morningstar account for nearly 71 percent of our rated funds’ assets under management,” explains Kennedy.