US - The T Rowe Price Group saw its assets under management reach a record high of US$334.7bn, but group CEO James Kennedy warned investors to expect "more conservative returns" in the near term.
T Rowe Price AuM increased $26.6bn in Q4 alone, but despite the positive result, Kennedy said: “Given that profit margins have been at record highs, some slowdown in the rate of corporate earnings growth is likely. As a result, investors should expect more conservative returns in the near term.”
The firm’s 2006 results showed net cash inflows from investors accounted for $6.3bn in Q4 2006.
Advisory revenues were up nearly $79m, marking a 24% increase over the corresponding quarter in 2005.
The 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, were registered at $117m in Q4, an increase of $29m from the 2005 quarter.
Ending assets in these portfolios stood at $128.2bn, up $10.9bn from September 2006. This was attributed to net inflows of $3.1bn from investors and market value appreciation of $7.8bn.
The firm posted record quarterly net revenues of $489m over Q4 2006.
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