Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:T. Rowe Reports Best Cash Inflows Since 1997 Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, July 28, 2003

T. Rowe Reports Best Cash Inflows Since 1997

by: Sean Hanna, Editor in Chief

After nearly three years of gloom, the outlook for the fund industry may finally be brighter. At least it is for T. Rowe Price. The Baltimore-based fund firm reported a healthy jump in profits that well exceeded the expectations of Wall Street analysts. The firm also reported its highest level of assets under management since the end of 2000.

"Things troughed last autumn and now we're in the process of rebuilding," George Roche, president and chairman of the firm told analysts. "Revenue stabilized, expenses were under control, investment income where we had write downs was positive. All those things combined had the quarter come out where it did."

All counted, T. Rowe Price said it earned $53.8 million, or 42 cents a share, in the second quarter. Analysts had expected it to earn just 38 cents per share, according to Thomson First Call.

The growing bottom line came despite a decline in T. Rowe Price's top line. It reported revenues of $237.4 million, down $2.9 million from $240.3 million in 2002's second quarter. That fall was due to a drop of $5.8 million in its investment advisory fees to $183.9 million.

Yet, despite the fall in revenue, the quarter was a strong one for asset growth. Indeed, T. Rowe's assets under management grew by $21.3 billion to $161.2 billion as of June 30. Assets under management started the quarter at $139.9 billion.

Three quarters of the increase in assets under management was the result of appreciation, although the firm did report roughly $2 billion of net inflows during the three-month period and $4 billion of new deposits. Those figures are the largest reported by the fund firm since 1997.

"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," added Roche.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use