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U.S. Markets

T. Rowe Price reports fourth-quarter outflows, shares slide

The logo of T. Rowe Price Group is pictured at its office in Tokyo, Japan, January 13, 2017. REUTERS/Toru Hanai

(Reuters) - Asset manager T. Rowe Price Group Inc on Thursday reported net withdrawals of investor cash during the fourth quarter, including from its target-date retirement portfolios, sending shares sliding 5.6 percent.

The Baltimore asset manager said total assets under management at Dec. 31 stood at $810.8 billion, after market gains of $2.9 billion during the quarter were more than offset by $5 billion of net client withdrawals.

The withdrawals included $1.9 billion from its target-date retirement portfolios as investors moved to passive products, the company said. The withdrawals marked T. Rowe Price’s first-ever quarterly outflow in the target-date area.

Shares stood at $69.91, down $4.18 in morning trading.

Reporting by Ross Kerber in Boston; Editing by Jeffrey Benkoe

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