T. Rowe Price
posted modestly higher year-over-year earnings for the second quarter but said investors poured more money into its flagship mutual funds during than in any quarter since 1997.
The Baltimore firm earned $54 million, 42 cents a share, on revenue of $237 million in the period, compared with $52 million, or 40 cents a share, on revenue of $240 million last year. Analysts surveyed by Thomson First Call forecast earnings of 38 cents a share.
T. Rowe Price had $161.2 billion in assets at June 30, up from $139.9 billion at the start of the quarter. Companywide, net cash inflows were $4 billion, with $2 billion coming into the T. Rowe Price mutual funds. Stocks funds added $1.5 billion, while bond and money-market funds took in $500 million, net. A total of $1.1 billion was added to its mid-cap growth, equity income and high-yield funds.
"As the market has shown signs of recovery, we continue to be encouraged by the performance of our managed investment portfolios and the company's positioning for both individual and institutional investors," the company said in a statement.
"The strong cash inflows for the quarter were buoyed by steady inflows from our defined contribution plan clients, additions made through our third-party distributors, successful global sales efforts, and additions to our college savings plans -- which recently topped $1 billion in assets," it said. "Lastly, we are encouraged by signs that individual investors are returning to the equity markets."