UPDATE 2-T.Rowe Price profit jumps as inflows mount

* Profit more than triples

* Investors add $10.3 billion

* Stock price off 3 cents
(Adds details on stock price, inflows, CEO comments)

By Svea Herbst-Bayliss

BOSTON, April 23 (BestGrowthStock) – T. Rowe Price Group’s (TROW.O: )
quarterly profit more than tripled as investors added billions
in new money to its top-performing portfolios.

The Baltimore-based company pulled in $10.3 billion in the
first three months of the year, faring far better than rival
money managers Janus Capital Group (JNS.N: ), which reported
outflows, and Federated Investors (FII.N: ), which reported small
inflows in its stock and bond funds but heavy outflows from its
money market funds.

Net income climbed to $153 million, or 57 cents a share,
from $48.2 million, or 19 cents a share, a year ago.

Wall Street analysts had forecast even higher earnings of
59 cents a share. The company does not hold analyst calls or
give market guidance.

In early trading T. Rowe’s share price was off 3 cents, or
0.1 percent, at $58.95.

As assets under management reached a record $419 billion —
rising 7 percent from the last quarter and 56 percent from a
year ago — investment management fees jumped 54 percent to
$471.8 million. Total revenue rose 45 percent to $556.2
million.

Attracted to portfolios like the $21.7 billion Growth Stock
Fund, which returned nearly 50 percent in the last year,
investors added $6.1 billion to T. Rowe’s mutual funds in the
first quarter. Inflows into stock and bond funds were equally
strong and investors withdrew $300 million from less lucrative
money market funds.

“People are still fickle and do not know exactly what to do
with their money,” T. Rowe Price Chief Executive James Kennedy
said in an interview.

After having long favored safer bond funds, investors
developed more appetite for stock funds in the first quarter,
Kennedy said. “But that has changed again in April where we are
seeing more interest in fixed income on the retail side,” he
added.

By comparison, rival Federated Investors, the third-largest
U.S. manager of money market funds, said customers added $1.1
billion to its stock and bond funds and withdrew $41 billion
from money market funds. Janus reported $1.9 billion in
outflows.

T. Rowe Price, which has been managing money in Baltimore
since 1937, has recently expanded into foreign markets in India
and Taiwan. Earlier this year the company was said to be in
negotiations to buy a stake in China’s biggest asset manager.

Such a deal would give the company access to China’s
fast-growing $400 billion mutual fund market and accelerate its
Asia expansion.

T. Rowe Price has not commented on the speculation and
Kennedy declined to detail the company’s possible plans for
expansion.

“The bulk of our assets are U.S.-based and U.S.-focused,”
Kennedy said. “But at the margin can we do a better job by
being more global, the answer is ‘yes,'” he added.

Stock Market Investing

(Reporting by Svea Herbst-Bayliss, editing by Dave Zimmerman)

UPDATE 2-T.Rowe Price profit jumps as inflows mount