T. Rowe Price Group had record revenue in the first quarter of 2006, and there was a 24% increase in first quarter profit, as investors increased their investments in the firm's mutual funds, the company said in its release.

The firm's mutual funds saw an additional $9.6 billion invested into mutual funds for the quarter. In addition, market gains added $13.8 billion, growing assets under management to a record $292.9 billion.

"What's most encouraging are the customer inflows because markets come and go," Matt Snowling, an analyst with Friedman Billings Ramsey, told The Baltimore Sun. "They are basically building up a war chest, and that puts them in position to be patient and pick off some of these assets as they come up for sale."

T. Rowe Price Chairman and President, George A. Roche said: "We continue to be encouraged by the healthy pace of net cash inflows across our multiple distribution channels into our separate and sub-advised accounts and mutual funds. Importantly, our sound financial position enables us to invest further in our business and gives us the flexibility to take advantage of industry or market opportunities. We are debt free and have cash and net liquid investments of more than $1 billion."

The form's first quarter gains came during a period where global equity markets produced solid gains overall. Roche noted that the company is optimistic about 2006 and believes that "the financial markets can make moderate progress."

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.