Updated from 8:49 a.m. EDTAsset manager T. Rowe Price ( TROW) reported a 43% increase in quarterly profit, thanks to a gain in assets, but still failed to beat analysts' estimates. Baltimore-based T. Rowe earned $80.3 million, or 60 cents a share, in its fiscal second quarter, compared to $53.8 million, or 42 cents a share, in the year-ago period. Revenue jumped by more than a quarter to $309.7 million, up from $237.5 million last year. The company's results were below Thomson First Call's consensus forecast of 62 cents a share. Assets under management rose to a record $206.8 billion at the end of the second quarter, up more than 28% from $161 billion for the same period last year. T. Rowe said a $5.8 billion increase in assets under management from $201 billion at the end of March included $4.2 billion of net investor inflows, with nearly $1.9 billion added to mutual funds and $2.3 billion to other managed portfolios. George A. Roche, the company's chairman and president, said: "We continue to be encouraged by net cash inflows into our mutual funds and managed accounts during the second quarter, which included steady inflows from across our multiple distribution channels. In particular, our institutional advisory efforts saw substantial growth, particularly outside the U.S. where net inflows exceeded $1 billion. In the U.S., activity in our institutional separate account business was buoyed by renewed interest in large-cap investments, as well as growing interest in our structured research strategy." Roche also said he sees the economy continuing to show signs of improvement with companies reporting strong second- quarter earnings, despite concerns that "inflation, rising interest rates, global political risks, and higher oil prices may be injecting more caution by investors currently." "We believe the outlook for the markets and our company remains favorable for the long term," said Roche.