Analysts had expected earnings of 34 cents on revenue of $424 million.
Assets under management increased 17% to $315.6 billion, and investment advisory revenues fell 27%, or $135 million. Investment advisory revenues from the T. Rowe Price mutual funds distributed in the U.S. fell by 29%, or $100.7 million.
“The firm’s investment advisory results relative to our peers remains strong, with at least 84% of the T. Rowe Price funds across their share classes surpassing their comparable Lipper averages on a total return basis for the one-, three- and five-year periods ended June 30,” noted James A.C. Kennedy, chief executive officer and president of the firm. For the 10-year track record, 78% of the firm’s funds have beaten their peers.
“Our second quarter results were achieved during an improving investment environment, with the market rally which began in early March signaling that we may have passed the bottom in the markets,” Kennedy added. “As worldwide government efforts to mitigate the fallout from the financial crisis begin to take hold, credit markets continue to revive, and the economy slowly begins to stabilize and recover, we are cautiously optimistic that the worst of the global economic and market downturn is behind us.”
Kennedy continued to say that investors should be encouraged by a return to longer-term financial stability and growth. That said, Kennedy cautioned that he believes the recovery will be uneven and challenging.
