While other firms like Putnam and Janus have suffered from the outflows that go with improper trading allegations, charges and settlements, T. Rowe Price has perhaps been the main beneficiary in the mutual fund industry, The Baltimore Sun reports. Fidelity and Vanguard have also stayed above the improper trading fray, and have continued to churn sizeable profits.
"People have not lost faith in investing in mutual funds. What they have done is lost faith in investing in the companies that have problems," said T. Rowe Chairman George C. Roche.
- The numbers are staggering. In the first half of 2003, T. Rowe Price saw $6.1 billion flow into its mutual funds. In the first half of 2004, the company got $10.6 billion a 74% increase. First half profits were $157.6 million, a 70% jump from first half 2003.
As squeaky-clean as T. Rowe has been, however, Roche admitted that human error could always creep into the picture. "We could make an honest error someday," Roche said. "Our focus has always been to try and do things for the long run. We want our investors to be long-term investors."