T. Rowe Price’s first quarter earnings revealed a 3% decline in revenues, as assets under management fell to $728 billion.
Net revenues fell short of $1 billion in Q1 this year, totalling $994 million, down 3% from last year’s figure.
Average assets under management decreased 4% in the first quarter this year to $728.1 billion, compared to the same period last year when assets under management averaged $759 billion.
T. Rowe Price explained in the report that its first quarter results “were impacted by greater non-operating income resulting from higher realised gains on investments.”
The investment management firm said it had also implemented “new accounting guidance related to the consolidation of certain sponsored investment portfolios.”
Discussing the results, William J. Stromberg, chief executive officer at T. Rowe Price, said the “steep declines through mid-February negatively impacted our average assets under management, and therefore our revenues.”
However, he concluded: “Our investment performance and client service have been outstanding over the long term and these strengths, coupled with our work to broaden our offerings and distribution, position us well for future growth.”