T. Rowe Price suffers 87% profit drop

T. Rowe Price Group Inc. posted an 87% fourth-quarter profit drop today, as the money manager was hammered by impairment charges, fund outflows and a steep drop in assets under management.
JAN 29, 2009
T. Rowe Price Group Inc. posted an 87% fourth-quarter profit drop today, as the money manager was hammered by impairment charges and a steep drop in assets under management. Baltimore-based T. Rowe reported net income of $24.3 million, or 9 cents a share, compared with $190.7 million, or 68 cents a share, in the year-earlier period. Assets under management fell 31% from the fourth quarter of 2007 to $276.3 billion at the end of December. T. Rowe also suffered $2.4 billion in fund outflows during the fourth quarter. Revenue generated from investment advisory fees in the quarter was down 35% from the year-earlier figure of $329.9 million.

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