This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Big Fund Firms Post Mixed Results

T. Rowe Price's largest revenue component, investment-advisory fees, rose 25% to $369.8 million, while operating expenses jumped by 22% to $253.1 million, mostly because of higher compensation costs for employees.

George Roche, T. Rowe's chairman and president, noted that "increasing stock market volatility" that may not be over.

"Although investors' appetite for risk has certainly been diminished and there are several headwinds, such as increased tension in the Middle East and rising global interest rates that could create a more challenging investment environment moving forward, we are optimistic about the rest of 2006 ... nevertheless, equity investing in the near-term may be less rewarding than investors had become accustomed to in recent years," Roche said.

As for Janus, second-quarter earnings dropped to $31.1 million, or 15 cents a share, from $35.3 million, or 17 cents a share, a year earlier. Analysts expected earnings of 16 cents a share.

Assets under management hit $153.4 billion, little changed year over year and down from the $158.1 billion at the end of the first quarter.

The lower assets at the end of the second quarter reflect long-term net outflows of $400 million, money market net inflows of $1.2 billion and $5.5 billion in market depreciation and fund performance.

"Despite the downturn in the market and this quarter's flows, Janus has come a long way," chief executive Gary Black said in a statement. "If we keep delivering consistently strong performance, I'm confident our investments in expanding our distribution will pay off."

Janus shares recently were off 34 cents, or 2%, to $16.60.

JPMorgan analyst Ken Worthington warned in a research note before the earnings report that Janus would be particularly exposed to the recent market downturn "since it has little flexibility to lower costs and its core growth franchise continues to experience net redemptions."

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs