T. Rowe Price's second quarter fell sharply from a year ago but came in well-ahead of analyst's estimates of $0.36 per share. The fund firm's diluted earnings per share came in at $0.40, down $.14 from $.54 per share in the second quarter of 2000 when revenues were $300.7 million. Its net income of $51.2 million came in 26 percent below the same period a year ago. George A. Roche, chairman and president, noted that the second quarter results reflect the decline in the company's assets under management versus the prior year. Yet its mutual fund assets rose $6.2 billion during the second quarter to $101.0 billion on June 30 while other managed portfolios grew $3.7 billion to $57.6 billion. The firm saw net appreciation of $6.1 billion during the second quarter and investors added net inflows of $144 million. Domestic stock funds had net investor subscriptions of $797 million, including $556 million into the Blue Chip Growth Fund. Money market and bond fund investors withdrew $390 million and international stock funds had net outflows of $263 million. Total advisory revenues from mutual fund assets under management declined $20.6 million versus the second quarter of last year when average fund assets were $113.8 billion.



Legg Mason came up far short of the analysts' consensus estimate of $0.58 earnings per share in for the three-month period ending June 30 tumbled. Its $0.52 result also marked a 13 percent decrease from $0.60 in the prior year to amid investor inactivity and declining commission revenue. Raymond A. "Chip" Mason, chairman and ceo, explained that the decline in earnings was primarily caused by declines in the firm's brokerage business -- particularly a 9% drop in commission revenues and a 26% drop in net interest profits. The firm's asset management business continued to set new records in both assets under management and revenues, he said.



Invesco has decided to continue its relationship with Citibank Worldwide Securities after a lengthy review process stemming from its acquisition of Perpetual. Citibank will continue to administer Pepertual's 11.2 billion dollar U.K. mutual fund assets and has also been appointed to serve as Trustee and Custodian for INVESCO's $7 billion U.K. mutual fund assets.



SEI Investments has formed an agreement with Advent Software through which SEI's Private Banking and Trust clients can now integrate their Advent Office software. The packahge is a portfolio management suite, with SEI's TRUST 3000, a technology solutions suite for investment and trust operations. Its goal is to provide for seamless back and middle office connectivity.



SEI Investments has announced yet another technology pact today. In this deal, SEI will partner with Vertical Management Systems to market and develop a web-based technology suite that will marry SEI's TRUST 3000, a technology solutions suite for investment and trust operations, with Vertical Management's automated fund processing.



The following three new Barclays Global Investors' iShares started trading on the AMEX today: the iShares Russell Midcap Index Fund, the iShares Russell Midcap Growth Index Fund, and the iShares Russell Midcap Value Index Fund.  

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