T. Rowe Price Group Inc. said Friday that its third-quarter net income dropped 13% from a year earlier, to $152.8 million, or 56 cents a share, as lower market valuation and the flight of worried investors lowered assets under management.
The money manager said that its revenue fell 2.8%, to $554.8 million.
On average, analysts polled by Thomson Reuters were expecting earnings of 56 cents a share on $551.6 million of revenue.
Investment advisory revenue declined 3.7%. Assets under management dropped 11% from a quarter earlier and 14% since the start of the year, to $345 billion.
T. Rowe Price reported $1.7 billion of net cash inflows for the quarter.
Mutual fund assets fell 11% from a quarter earlier and 16% from a year earlier. The company said $1.3 billion of net inflows from bond and money funds were offset by net outflows from stock funds.
To calm investor fears during the largest-ever run on money market funds, last month T. Rowe Price joined a Treasury Department program to insures all money market holdings as of Sept. 19 in the event that funds break the buck.
