T. Rowe Price Profit Up 6 Percent in Tough Market
From the Associated Press
T. Rowe Price Group's profit jumped 6 percent in the first quarter, to $151.5 million (55 cents a share) from $142.9 million (51 cents) in the comparable period a year earlier, as a the investment manager's funds continued to do well in spite of a tough economy.
Revenue climbed 10 percent, to $559.1 million.
The Baltimore firm charges fees for managing clients' investments, and profit stems from how much money clients pour into T. Rowe Price funds, and how well those funds do.
Clients poured $9.7 billion into T. Rowe Price in the quarter, but a cold stretch for stocks shrank the value of the company's investments under management by $31.1 billion.
Assets under management at the end of March were $378.6 billion, compared with $400 billion at the end of last year.
"The start to 2008 has been anything but upbeat," CEO James A.C. Kennedy said in a statement. "In spite of a very difficult market environment so far this year, we continue to be encouraged by our solid investment management results."
The company said 68 percent of its funds are beating the Lipper averages -- a benchmark of mutual fund performance -- for the past year.
Kennedy said economic data -- in the context of an economy in which many companies and investment funds are trying to sell their assets -- suggest the U.S. "will be hard-pressed to avoid a recession."
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