T. Rowe Price
Assets under management at T. Rowe climbed 8.5% from the prior quarter, to a record $379.8 billion. The firm reported a 19% increase in earnings and a 24% increase in revenue, boosted by a 25% rise in investment advisory fees from a year ago. An additional $22 billion came from net market appreciation and income. Investors forked over $7.9 billion in new cash flows, showing strong demand across product lines. Investment performance also remained strong, with at least 74% of the company's funds surpassing their comparable Lipper averages on a total return basis for the one-, three-, five-, and 10-year periods ended June 30.
The company remains debt-free, with $1.7 billion in cash and investment corporate holdings, after having repurchased nearly 1.6 million shares in the second quarter. Net cash inflows were distributed broadly, including an 18.5% increase in retirement accounts, which usually represent "stickier" assets. Expenses, a source of criticism from the previous quarter, appeared well-managed, as the operating margin widened 231 basis points from a year ago, to 43.3%.
Management noted that strong equity market returns bolstered its performance, a factor influencing the results of other money managers. Rivals Ameriprise
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