Regarding the AUM increase over the quarter, President and CEO William J. Stromberg said in a statement that the firm's investment teams "continued to deliver solid performance" for clients in the quarter. "Healthy returns in global stock and bond markets combined with $2.5 billion of net client inflows drove total assets under management to $1.125 trillion," Mr. Stromberg added.
By asset class, multiasset strategies had $2 billion in net inflows in the second quarter vs. $3.2 billion in net inflows during the first quarter and $2.6 billion in the second quarter of 2018.
Fixed-income strategies and money market funds, which are combined in the report, had $800 million in net inflows during the three months ended June 30 compared to $1.5 billion in net inflows in the first quarter and net inflows of $1.2 billion during the year-earlier quarter.
Equity strategies reported net outflows of $300 million. In the first quarter, equity strategies experienced net inflows of $700 million vs. net inflows of $3.8 billion in the second quarter of 2018.
T. Rowe Price U.S. mutual funds had net outflows of $6.4 billion, for which client transfers contributed $5.9 billion in net outflows. Subadvised and separate accounts had net inflows of $1 billion, which included $400 million in inflows from client transfers. Other investment products had $7.9 billion in net inflows.
The firm's net revenue in the second quarter was $1.395 billion, up 5.1% from the first quarter and up 3.7% from the second quarter of 2018. Net income in the second quarter was $527.5 million, up 2.9% over the three months ended March 31 and up 17.5% from the year-earlier quarter.
The firm cut about 170 jobs on July 1, following the closure of its Tampa office on June 30, the earnings release said. The jobs were mainly related to the retail business, affecting client support staff working with individual investors or 401(k) participants, a spokesman told Pensions & Investments in April.
The company announced in May 2018 that it planned to close the Tampa office and consolidate activities at operations centers in Owings Mills, Md., and Colorado Springs, Colo., the spokesman said at the time.