WRAPUP 1-Money manager profits recover, inflows steady

Thu Jan 28, 2010 9:58am EST

* Assets under management jump on stock market rebound

* Net inflows mixed from third quarter

By Aaron Pressman

BOSTON, Jan 28 (Reuters) - Top U.S. money managers reported sharply higher fourth-quarter profits on Thursday, bolstered by the stock market's strong rise.

Net inflows were steady but showed little sign that investors were growing more attracted to stocks, despite the market's gains.

Atlanta-based Invesco (IVZ.N) said net income more than tripled from a year earlier to $110.9 million, or 25 cents a share. Baltimore-based T. Rowe Price Group (TROW.O) said profit jumped six-fold to $153 million, or 57 cents a share. And Denver-based Janus Capital Group (JNS.N) said earnings from continuing operations more than quadrupled to $37 million, or 20 cents a share.

All three companies were aided by the stock market's recovery in 2009. The Standard & Poor's 500 Index has risen 32 percent over the past year.

Some managers' year-earlier results were hurt by losses on their own investments.

At Invesco, assets under management increased 3 percent from the third quarter to $423.1 billion, aided by a $10.2 billion increase in market value. Customers added a net $2.6 billion to long-term funds, the same level of inflow as in the third quarter. Money market clients pulled out a net $7.7 billion, after withdrawing $2.6 billion in the third quarter.

T. Rowe reported total assets of $391.3 billion, a 7 percent gain from the end of the third quarter. Net inflows added $4 billion to mutual funds and $3.3 billion to institutional accounts. That about equaled the $7.4 billion of total net inflow in the third quarter.

Market movements added $17.8 billion during the fourth quarter, down from gains of $43.2 billion in the third quarter.

Janus said it oversaw $159.7 billion at the end of the fourth quarter, a 5 percent increase from the third quarter. Net flows were break-even, while rising market values added $8 billion. Investors withdrew a net $800 million in the third quarter, when market gains added $20 billion. (Reporting by Aaron Pressman; Editing by John Wallace)

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