Actionable news
0
All posts from Actionable news
Actionable news in TROW: T. Rowe Price Group, Inc.,

T. Rowe Price Group Reports Third Quarter 2015 Results

Financial Highlights


Three months ended


Percentage change


Nine months ended


Percentage change

(in millions, except per-share data)

9/30/2014


9/30/2015



9/30/2014


9/30/2015


Investment advisory fees

$

890.7



$

922.6



4

%


$

2,572.4



$

2,761.3



7

%

Net revenues

$

1,020.8



$

1,049.0



3

%


$

2,959.7



$

3,148.4



6

%

Operating expenses

$

532.1



$

590.7



11

%


$

1,548.8



$

1,704.5



10

%

Net operating income

$

488.7



$

458.3



(6)

%


$

1,410.9



$

1,443.9



2

%

Non-operating investment income

$

5.2



$

.3



(94)

%


$

73.4



$

60.1



(18)

%

Net income

$

303.6



$

277.1



(9)

%


$

913.7



$

919.8



1

%













Diluted earnings per share

$

1.12



$

1.06



(5)

%


$

3.37



$

3.45



2

%













Average assets under management (in billions)

$

739.5



$

763.1



3

%


$

719.4



$

768.6



7

%

Assets under management at September 30, 2015, were $725.5 billion, a decrease of $47.5 billion from June 30, 2015, and $21.3 billion from the end of 2014.


Three months ended 9/30/2015


Nine months ended 9/30/2015

(in billions)

Sponsored U.S. mutual funds


Other investment portfolios


Total


Sponsored U.S. mutual funds


Other investment portfolios


Total

Assets under management

at beginning of period

$

500.1



$

272.9



$

773.0



$

477.6



$

269.2



$

746.8














Net cash flows before client transfers

(1.2)



.5



(.7)



7.5



(8.4)



(.9)


Client transfers from mutual funds to other portfolios

(1.9)



1.9





(5.8)



5.8




Net cash flows after client transfers

(3.1)



2.4



(.7)



1.7



(2.6)



(.9)


Market depreciation, net of income

(31.0)



(15.8)



(46.8)



(13.3)



(7.1)



(20.4)


Change during the period

(34.1)



(13.4)



(47.5)



(11.6)



(9.7)



(21.3)














Assets under management

at September 30, 2015

$

466.0



$

259.5



$

725.5



$

466.0



$

259.5



$

725.5


For the three-month period ended September 30, 2015, the mutual funds' net cash flows after client transfers include net outflows of $3.7 billion from the fixed income funds that were offset in part by net inflows of $.4 billion into the stock and blended asset funds and $.2 billion into the money market funds. For the other portfolios, net cash inflows during the third quarter of 2015 were $2.4 billion, including $1.9 billion of transfers from the mutual funds. These net cash inflows include net inflows from subadvised clients and the firm's other sponsored portfolios that were offset in part by net cash outflows from a small number of institutional investors. The firm's overall net cash flows for the third quarter of 2015 include $1.4 billion that originated in the firm's target-date retirement strategies, which totaled $156.9 billion in assets under management at September 30, 2015. These target-date assets contribute to the nearly $201 billion of assets under management in the firm's asset allocation portfolios.

T. Rowe Price remains debt-free with ample liquidity, including cash and sponsored portfolio investment holdings of nearly $3.0 billion at September 30, 2015. The firm expended $852 million during the first nine months of 2015 to repurchase 11.2 million shares of its outstanding common stock, including nearly $467 million to repurchase 6.4 million shares in the third quarter. Based on current strategic projects and plans, the firm expects capital expenditures for the full year 2015 to be about $170 million, including $115 million already invested in technology and facilities this year. The firm's expenditures for the year have been made from its available liquid resources.

Investment Performance

For the three-year period ended September 30, 2015, 78% of the T. Rowe Price mutual funds across their share classes outperformed their comparable Lipper averages on a total return basis, 77% outperformed for the five-year period, 88% outperformed for the 10-year period, and 71% outperformed for the one-year period. In addition, T. Rowe Price stock, bond, and blended asset funds, that ended the quarter with an overall rating of four or five stars from Morningstar, account for 84% of the assets under management in the firm's rated funds. The performance of the firm's institutional strategies against their benchmarks was substantially similar. The firm's target-date retirement funds continue to deliver very attractive long-term performance, with 100% of these funds outperforming their comparable Lipper averages on a total return basis for the three-, five-, and 10-year periods ended September 30, 2015.

Financial Results

Investment advisory revenues earned in the third quarter of 2015 from the T. Rowe Price mutual funds distributed in the U.S. were $670.8 million, an increase of $29.2 million, or 5%, from the comparable 2014 quarter. Average mutual fund assets under management in the third quarter of 2015 were $491.7 billion, an increase of 4% from the average in the third quarter of 2014.

Investment advisory revenues earned in the third quarter of 2015 from the other investment portfolios were $251.8 million, an increase of $2.7 million, or 1%, from the comparable 2014 quarter. Average assets under management in the third quarter of 2015 were $271.4 billion, an increase of 1% from the average in the third quarter of 2014. Investors domiciled outside the United States accounted for about 5% of the firm's assets under management at September 30, 2015.

Money market...


More