US - Investment firm T. Rowe Price's third quarter results have revealed that the firm's fund assets declined $13.1bn from June 30, 2001 to $87.9bn at September 30, 2001.
The company said the result reflects the full impact of market declines during the past three months. Other managed portfolios also declined $5.1bn during the last three months to $52.5bn at quarter end.
The lower level of assets in other managed investment portfolios reduced advisory fees $11m in the 2001 third quarter versus the third quarter of 2000.
Investment and other income declined $3.8m from the 2000 period, primarily due to smaller average cash balances held after the T. Rowe Price International acquisition last year. The firm expects that investment income in future quarterly periods will generally be lower than that of prior-year comparable periods.
Chairman and president George Roche explained: The stock markets’ sharp decline this autumn will adversely affect our fourth quarter revenues and earnings.
“The general economic outlook should improve next year. The Fed’s aggressive response in lowering short-term interest rates and the proposed additional fiscal stimulus should result in an improving picture for the economy and corporate profits next year.”
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