US - Baltimore's T. Rowe Price Group increased its assets under management to US$257.6bn at September 30 according to its Q3 report.
The increase is up $22.4bn from the end of 2004, and $12.8bn from June 30.
Record average assets under management were $254.1bn for the quarter, more than $49bn higher than the average in Q3 2004.
The report revealed net revenues of $388.7m and net income of $116.3m, comparable to net revenues of $316.2m and $82.5m net income in the previous year.
Cash inflows included nearly $400m resulting from the merger of the TD Waterhouse Index Funds into four of the T. Rowe Price index funds.
The firm’s target date retirement funds, which provide shareholders with diversified portfolios invested in underlying T. Rowe Price funds that shift asset allocations as the investor ages, were also responsible for asset growth, with net inflows exceeding $800m in Q3. Total assets in these retirement funds hit $6.4bn.
Investment advisory revenues were up nearly 26%, about $65m more than the 2004 quarter. Investment advisory revenues earned from the fund’s US-distributed mutual funds ended September 2005 at $165.3bn, up $10.8bn during the quarter.
Investors added net inflows of $3.5bn to the mutual funds during the quarter while market appreciation and income added $7.3bn.
Investment advisory revenues earned from other managed investment portfolios, consisting of institutional separate accounts, sub-advised funds, sponsored mutual funds offered to non-US investors, and variable insurance portfolios, increased nearly $13m to more than $85m.
Ending assets in these portfolios were $92.3bn, up $2bn from June 30, 2005. Market value appreciation added more than $3.3bn to these portfolios during the quarter while investors made net withdrawals of $1.3bn.
Chairman and president George A. Roche (pictured) commented:
“Solid performance over the quarter was achieved against a backdrop of two devastating hurricanes, sharp increases in energy prices, and higher short-term interest rates.
“The risk of higher inflation and a further tightening of monetary policy by the Federal Reserve could make the market environment more challenging in the months ahead.”
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