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Friday, July 24, 2009|
T. Rowe's Q2 Net Falls 38 Percent
T. Rowe Price earned $100 million in the second quarter, down 38.3 percent from the year-ago period. Mutual fund AUM at the end of June totaled $189 billion, an increase of $30.2 billion from end-March and $9.4 billion higher than the second quarter average, company executives said Friday morning.
Investment advisory revenues from mutual funds in the U.S. fell 29 percent to $248.8 million.
T. Rowe saw net inflows of $4.1 billion, of which $1.9 billion were in domestic stock and blend funds. Bond and money market funds recorded net inflows of $1.3 billion, and global stock funds had $900 million.
The Baltimore fund firm's advertising and promotion spending during the quarter dropped 31 percent year-over-year, to $15.3 million.
"Our second quarter results were achieved during an improving investment environment, with the market rally which began in early March signaling that we may have passed the bottom in the markets," said T. Rowe president and CEO James Kennedy. "Nevertheless, the severe downturn in global financial markets since mid-2008 has had a dramatic effect on our comparative financial results."
"While we continue to be vigilant about controlling expenses, our financial stability allows us to take advantage of attractive growth opportunities, invest in key capabilities including investment professionals and technologies and, most importantly, continue to provide our clients with investment management expertise and high-quality service," he added.
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