2010 Q4 Earnings: T. Rowe Price Boosts Income 26%

Year-end assets under management increased nearly 21% from the previous year-end high of $400.0 billion as of Dec. 31, 2007.

"Our year-end assets under management hit a record level," Kennedy said. "Quarterly and annual average assets under management also hit new highs for a reported period. Accordingly, our annual net revenues, net income and earnings have recovered from the recent financial crisis, surpassing their 2007 peaks."

Relative to the 2009 fourth quarter, investment-advisory revenues earned from the T. Rowe Price mutual funds distributed in the U.S. increased 20%, or $63.5 million, to $381.9 million in the fourth quarter of 2010.

Average mutual fund AUM totaled $272.4 billion in the 2010 quarter, an increase of 21% from the average for the comparable 2009 quarter. Mutual fund assets at Dec. 31, 2010 were $282.6 billion, an increase of $23.9 billion from the end of September 2010, and $49.9 billion from the end of 2009. 

Net inflows to the sponsored mutual funds were $3.2 billion during the fourth quarter of 2010, including $1.7 billion added to the stock and blended asset funds, $1.4 billion to the bond funds, and $0.1 billion to the money market funds.

The New Income, Equity Income, International Bond, and Dividend Growth Funds together added $1.9 billion in net inflows. Market appreciation and income increased mutual fund AUM by $20.7 billion during the fourth quarter of 2010.

Investment advisory revenues earned on other investment portfolios that the firm manages (not T. Rowe Price brands) grew $35.3 million, or 25%, from the fourth quarter of 2009, to $178.6 million.