T. Rowe Price Group had record assets under management of $334.7 billion as of Dec. 31, up 8.6% from the prior quarter and up 24% from the year before, said spokesman Brian Lewbart. Mutual fund assets rose $15.7 billion during the quarter to $206.5 billion, or 62% of total assets, with net inflows of $3.2 billion combining with market appreciation of $12.5 billion.
Of that $3.2 billion, the firm's target-date retirement funds accounted for $2.6 billion, the largest quarterly intake since the funds were launched in September 2002. For the year through December, those target-date funds had net inflows of $6.6 billion, accounting for the bulk of the $8.9 billion rise in retirement fund assets, which came to $17.3 billion.
T. Rowe reported institutional inflows of $3.1 billion for the latest quarter and $14.9 billion for the year. For the quarter, institutional assets under management rose $10.9 billion, or 9.3%, to $128.2 billion, for a year-on-year increase of 29%.
For the quarter, T. Rowe reported record revenue of $489 million, up 8.4% from the prior quarter and up 21% from the year before. Net income also reached a new quarterly record of $149 million, up 16% from Sept. 30 and up 27% from the year before.
Separately, Federated Investors had record assets under management of $237.4 billion as of Dec. 31, up 7% from the prior quarter and up 11% from the year before, said spokeswoman Meghan McAndrew. The firm also reported record equity assets of $40.9 billion, up 37% from the year before on the back of strong equity markets and Federated's July acquisition of MDT Advisers, a quant manager with $6.4 billion in assets.
Federated's revenue for the latest quarter came to $259.7 million, up 6% from the prior quarter and up 9% from the year before. Net income for the quarter came to $53.3 million, up 17% from the previous quarter and up 3% from the year before.
In addition, PENN Capital Management's assets under management swelled 72% to $4.3 billion for the year ended Dec. 31, according a news release. Assets under management at the end of the fourth quarter are up roughly 13% from the $3.8 billion recorded as of Sept. 30.
The increase was due to "very good performance across our styles," said spokesman Christian Noyes. "Our mantra is that we're better high-yield managers because we're equity managers and we're better equity managers because we're high-yield managers. We're fully integrated."
