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August 23, 2012 at 08:00 PM
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.
