T. Rowe Price Group reported its fourth quarter 2011 results, including net revenues of $671.6 million, net income of $188.4 million, and diluted earnings per common share of $0.73. In the fourth quarter of 2010, net revenues were $647.5 million, net income was $191.6 million, and diluted earnings per common share was $0.72.
Investment advisory revenues for the fourth quarter of 2011 increased $10.0 million to $570.5 million from the comparable 2010 period, as average assets under management were up 5%. Assets under management at Dec. 31, 2011 totaled $489.5 billion, an increase of $36 billion from $453.5 billion at Sept. 30. The increase in assets under management in the fourth quarter of 2011 is attributable to net cash inflows of $1.1 billion, and market appreciation and income of $34.9 billion.
Year-end assets under management of $489.5 billion increased $7.5 billion from $482.0 billion at the end of 2010, and include $289.4 billion in T. Rowe Price mutual funds distributed in the United States and $200.1 billion in other managed investment portfolios. Net cash inflows from investors of $14.1 billion in 2011, including $8.0 billion originating in the target-date retirement portfolios, were offset by $6.6 billion in market depreciation and income not reinvested. Year-end assets in the target-date retirement portfolios were $66.9 billion, including $62.9 billion in the target-date retirement funds and $4.0 billion in the target-date retirement trusts.
Annual results for 2011 include net revenues of $2.7 billion, net income of $773.2 million, and diluted earnings per common share of $2.92, an increase of 15% from the $2.53 per share earned in 2010.
“With markets facing substantial headwinds, 2011 was an unusually volatile year that tested the patience of investors around the world. Despite the tumult, a fragile U.S. economic recovery continued to gain traction, bond investors came through in relatively good shape, and investors in U.S. large-cap companies had small gains,” James A.C. Kennedy, T. Rowe Price’s CEO and president.
Mary Ann Tasoulas writes for Money Management Executive.