T. Rowe Price Group reported its second quarter of 2018 results, including net revenues of $1.3bn, net income of $448.9m, and diluted earnings per common share of $1.77. For the second quarter of 2017, net revenues were $1.2bn, net income was $373.9m, and diluted earnings per share was $1.50. On a non-GAAP basis, diluted earnings per share for the second quarter of 2018 was $1.87, compared with $1.28 in the 2017 quarter.
Assets under management increased $29.9bn in the second quarter of 2018 to $1.044trn at June 30, 2018. The firm’s net cash inflows were $7.6bn in the second quarter of 2018. Clients transferred $4.7bn in net assets from the US mutual funds to other investment products, including the retirement date trusts, in the second quarter of 2018.
The assets under management in the firm’s target date retirement products, which are reported as part of the multi-asset column in the table above, were $244.2bn at June 30, 2018, compared with $239.9bn at 31 March 2018 and $233.8bn at 31 December 2017. Net cash flows into these portfolios were $2.5bn in the second quarter of 2018 and $8.5bn for the first half of 2018.
Investors domiciled outside the United States accounted for about 6% of the firm’s assets under management at 30 June 2018 and 31 December 2017.
William J. Stromberg, president and chief executive officer, commented: “In a second quarter where attractive US equity returns proved the exception to volatile global markets, T. Rowe Price continued to perform well. Our assets under management increased nearly 3%, and we were pleased with the continued strength and diversification of net inflows across asset classes, client segments, and geographies.”