T. Rowe Price Group announced better-than-expected fourth-quarter earnings Jan. 28 as assets under management soared on the popularity of target-date retirement portfolios.
It reported net revenues of $647.5 million, up from $542.6 million a year earlier; net income of $191.6 million, up from $152.5 million; and diluted earnings per common share of 72 cents, a 26% jump from the 57 cents the year earlier.
Assets under management grew to $90.7 billion last year, to a record $482 billion.
Net cash inflows in the quarter totaled $6.9 billion, and market appreciation and income added $35.4 billion to assets under management.
Investment advisory revenues grew 21%, or by almost $99 million, from the year earlier.
Target-date retirement investment portfolios added assets under management.
During the quarter, net inflows of $1.3 billion to these portfolios brought total net inflows to $7.5 billion for the year.
Assets in target-date retirement portfolios totaled $59.4 billion at Dec. 31, 12% of the company's assets under management and nearly 20% of its mutual fund assets.