(Reuters) - T. Rowe Price Group reported a better-than-expected quarterly profit on Friday, as concerns about the economy somewhat eased from last year, boosting assets under management at the firm.
The upbeat results at the investment manager reflect the strong rebound in markets this year, bolstered by expectations that the Federal Reserve can engineer a soft landing — a scenario where growth slows enough to get inflation under control, without a recession.
The Baltimore, Maryland-based company earned $2.17 per share, excluding one-time items, in the third quarter. Analysts on average estimated $1.78 per share, according to LSEG data.
"However, our flows remain pressured, with net outflows from equity outweighing the positive net flows to fixed income, multi-asset and alternatives in this quarter," CEO Rob Sharps said in a statement.
Total assets under management at the end of the quarter was $1.35 trillion, up 9.5% over the year earlier.
Investment advisory fees were up 1.5% at $1.46 billion in the quarter, T. Rowe said.
(This story has been corrected to fix the total assets under management to $1.35 trillion, not billion, in paragraph 5)