T. Rowe Price rises most in two years as profit jumps on rally
T. Rowe Price Group Inc., the asset manager that has posted a profit every quarter since going public in 1986, rose the most in more than two years after fourth-quarter profit jumped 24%.
T. Rowe rose as much as 5.7%, the most since November 2011, after reporting net income of $284.8 million, or $1.06 a share, for the three months ended Dec. 31, compared with $229.9 million, or 88 cents, a year earlier. The stock rose 4.7% to $80.11 at 12:17 p.m. in New York.
T. Rowe benefited from a 30% rally by the S&P 500 in 2013, which helped to boost assets to a record $692.4 billion. Clients added about $100 million in net new money as retail customers made deposits, primarily through retirement-oriented products, while institutional clients withdrew money.
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Institutional withdrawals were largely driven by one large, non-U.S. client that has been pulling money out for multiple quarters, Chief executive James Kennedy said Tuesday. Mr. Kennedy said the client's withdrawals were “almost done.”
(Bloomberg News)
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