T. Rowe Price Group reported assets under management of $453.5 billion as of Sept. 30, down 13% from the record $520.9 billion reported for the quarter ended June 30 but up 3.1% from the year before.
Market-related declines accounted for $64.8 billion of the $67.4 billion decline, but T. Rowe Price also saw net outflows of $2.6 billion for the latest quarter — its first outflows since the height of the global financial crisis in the fourth quarter of 2008, when the company reported outflows of $2.4 billion.
The latest outflows, mostly institutional, compared to inflows of $9.8 billion for the prior quarter and $8 billion for the year-earlier quarter.
T. Rowe reported $266.6 billion in mutual fund AUM as of Sept. 30, down 13% from the prior quarter but up 3.1% from the year before.
According to a news release Tuesday, the company's mutual funds saw net outflows of $200 million for the quarter. Rebalancing of the firm's $60.4 billion in target-date retirement portfolios contributed to net outflows of $2 billion from bond funds, offset by $1.2 billion in net inflows for stock and blended asset funds and $600 million to money market funds.
The company reported $2.4 billion in net outflows from other investment portfolios, including institutional mandates, leaving that business segment with $186.9 billion, down 13% from the prior quarter but up 3.3% from the year before. That “resulted primarily from certain third-party intermediaries and institutional investors reducing risk in their portfolios in the wake of the volatile market environment experienced during the third quarter,” according to T. Rowe Price's third-quarter earnings news release.
In the same release, James A.C. Kennedy, T. Rowe president and CEO, conceded that volatile markets and lower valuations had “made this a tough environment for our clients and the firm in the short term.”
T. Rowe Price reported net income of $185.5 million for the latest quarter, down 9.4% from the prior quarter but up 9.7% from the year before.
Revenues came to $679.4 million, down 4.8% from the prior quarter but up 16% from the year before.