Earnings drop for T. Rowe, Federated, Franklin

T. Rowe Price Group Inc. reported its first profit drop since 2003 today as weak credit conditions led to a steep decline in inflows.
OCT 24, 2008
T. Rowe Price Group Inc. reported its first profit drop since 2003 today as weak credit conditions led to a steep decline in inflows. The Baltimore-based asset manager saw third-quarter net income fall 12.6% to $153 million, or 56 cents a share, from $175 million, or 63 cents a share, in the year-earlier period. Third-quarter net cash inflows fell 76% from a year earlier to $1.7 billion. Assets under management fell to 13% from the 2007 third quarter to $345 billion. In other earnings news, Federated Investors Inc. reported a 3% third-quarter profit drop yesterday of $56.2 million, or 56 cents a share, compared with $57.7 million, or 57 cents a share, a year earlier. The Pittsburgh-based investment manager’s total managed assets were up 25% from the 2007 third quarter to $344 billion. Franklin Resources Inc. reported a profit drop of 30% yesterday of $403.3 million, or $1.71 a share, compared with $436.9 million, or $1.76 a share, a year earlier. Assets under management at the San Mateo, Calif.-based fund manager fell 21% from a year earlier to $507.3 billion.

Latest News

Osaic executives Kristy Britt and Greg Cornick to leave
Osaic executives Kristy Britt and Greg Cornick to leave

The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.

Estate planning becomes a client retention issue for financial advisors, survey finds
Estate planning becomes a client retention issue for financial advisors, survey finds

Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.

Candidly adds AI agents for Trump Accounts, workplace benefits
Candidly adds AI agents for Trump Accounts, workplace benefits

CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.

BMO adds three advisors in Dallas amid Y'all Street wealth boom
BMO adds three advisors in Dallas amid Y'all Street wealth boom

The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.

UBS moves toward full-service US bank as plans to extend wealth business
UBS moves toward full-service US bank as plans to extend wealth business

Employee accounts, crypto trials and job cuts frame a pivotal year for the Swiss lender.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.