Assets under management by active manager T Rowe Price fell more than $200bn over the past year, as a rocky year in markets hurt the traditional equity house and knocked fees.
While total assets under management fell 15 per cent since the same time last year, the Baltimore-based manager’s worst outflows were in equities, with a 22.5 per cent drop, down to $687bn from $886bn.
Not all of this was due to reduced market values — clients withdrew more than $16bn net from the manager this quarter, with $23.5bn in net outflows from equities.
Rising rates and a brutal year for equities also resulted in a large drop in fees it charges on investments, trading, as well as for its advisory services
The quarter “showed some encouraging signs, despite the challenging environment…However, the market environment continues to be uncertain and our equity flows remain under pressure,” said Rob Sharps, chief executive officer.
Source: Economy - ft.com
