Driven by an increase in investment-advisory fees, T. Rowe Price Group Inc. reported Friday that its quarerly results increased 59% in the second quarter.
The Baltimore-based money manager reported that its profits increased to $158.5 million, or 59 cents per share, and net revenue rose 30.6% to $577.4 million.
The results missed analyst expectations by two cents, according to Thomson Reuters.
Assets under management, which surged in the first quarter, fell 6.7% during the second quarter to $391.1 billion. It generated $15.4 billion in net inflows, up $3.5 billion from a year earlier and $10.3 billion from the previous quarter.
Target-date funds continued to surge for the company. During the quarter, net inflows of $1.6 billion originated in these portfolios. Assets in the target-date retirement portfolios were $45.9 billion as of June 30, accounting for nearly 12% of it assets under management and 19% of its mutual fund assets.
James A.C. Kennedy, the company’s chief executive officer and president, said he was "encouraged" by the results, which were "achieved during a difficult period in which the European sovereign debt crisis sparked a sharp correction in global equity markets and volatility returned to levels not seen in more than a year." Kennedy took a pay cut last year after a difficult year for the company.
“Our strong capital position gives us substantial financial flexibility to weather the inevitable ups and downs in the market and enables us to continue to invest in our business for the future," he said in a press release.
T. Rowe Price [TROW] suffered heavy outflows during the financial crisis as investors moved the bulk of their portfolio into bonds and cash.