Asset manager Alliance Capital ( AC) reported a 5% rise in second-quarter profit due to an increase in assets under management, but joined the parade of money managers unable to beat analysts' estimates. New York based-Alliance earned $156 million, or 53 cents a share, compared with $148.1 million, or 51 cents a share, in the year-ago period. Revenue rose to $737 million from $662 million last year. The company's results were below Thomson First Call's consensus forecast of 57 cents a share. The company said assets under management rose to $481 billion at the end of the second quarter, up 12.8% from a year ago, due primarily to equity market appreciation. Long-term net asset inflows for the quarter were $1.4 billion. Private client and institutional investment management inflows were $1.1 billion and $1.2 billion, respectively, which were partially offset by retail net asset outflows of $900 million. CEO Lewis Sanders said, "New business volume improved substantially as compared to the first quarter, led by global services in the institutional market. Asset inflows remained strong in our private client business, but, as expected, results in the retail channel were depressed with the exception of managed accounts where growth accelerated noticeably. Attrition in U.S. growth services continued to be relatively high, holding net long-term assets inflows firm wide to a modest level." Looking forward, analysts expect third-quarter revenue for the company to be 58 cents on revenues of $729 million. In regular trading, the stock closed up 49 cents, or 1.5%, to $33.52. Earlier today, fellow asset manager T. Rowe Price ( TROW) announced second-quarter earnings growth of 43%, but missed analysts' estimates by 2 cents. The company earned $80.3 million, or 60 cents a share, in its fiscal second quarter, compared with $53.8 million, or 42 cents a share, in the year-ago period. Thomson First Call's consensus forecast was for 62 cents a share.