T. Rowe Price Group reported $773 billion in assets under management as of June 30, flat from three months earlier but up 4.7% from a year earlier, said the company's earnings statement released Thursday.
Net outflows for the second quarter were $2.1 billion, compared to net inflows of $1.9 billion for the first quarter and net outflows of $200 million for the second quarter of 2014.
T. Rowe reported net inflows of $1.4 billion into the firm’s mutual funds for the quarter ended June 30, which included net inflows of $1.5 billion into fixed-income funds, $400 million of net inflows into stock and blended asset funds, and net outflows of $500 million from money market funds.
The net cash outflows of $3.5 billion during the second quarter of 2015 from the other investment portfolios were largely concentrated among institutional and subadvisory clients that redeemed primarily from large-cap U.S. equity strategies.
Mutual fund assets were $500.1 billion as of June 30, flat from March 31 but up 6.2% from June 30, 2014. The firm reported $166.5 billion in target-date portfolios as of June 30, up 3.5% from three months earlier and up 18.4% from the same time a year ago.
Net income for the quarter came to $333.2 million, up 7.6% from the previous quarter and 9% higher than the second quarter of 2014. Net revenue, meanwhile, totaled $1.07 billion, a 4% increase from the previous quarter and a 9% increase from the same period a year ago.
Christopher Shutler, equity research analyst at William Blair & Co., wrote in a note to clients that T. Rowe Price “has a tremendous track record for strong investment performance, a premier target-date fund franchise, a solid capital return program and a reasonable valuation.”
Mr. Shutler added that “while the firm's efforts to expand its international distribution capabilities have been slow to materialize, it remains a tremendous opportunity for long-term asset growth.”
