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T. Rowe Price Q3 AUM grows despite 'choppy market environment'

T. Rowe Price Group Inc. reported third-quarter adjusted net income attributable to the company of $521.7 million, or $2.13 per share, up from $505.0 million, or $1.99 per share, in the year-ago period.

The S&P Global Market Intelligence consensus normalized EPS estimate for the quarter was $1.97.

Ending assets under management as of Sept. 30 were $1.126 trillion, a 3.9% increase from $1.084 trillion in the third quarter of 2018. President and CEO William Stromberg credited the growth in AUM on "continued solid investment performance combined with net client inflows of $2.5 billion." He also noted there was a "choppy market environment" in the quarter.

On a GAAP basis, however, the asset manager's third-quarter net income allocated to common shareholders declined on a year-over-year basis to $532.0 million, or $2.23 per share, from $569.3 million, or $2.30 per share. Total non-operating income plunged year on year to $43.0 million from $124.9 million, with the company noting it realized a one-time gain in the third quarter of 2018 from the sale of its stake in Daiwa SB Investments Ltd.

T. Rowe Price's net revenues increased year over year to $1.43 billion from $1.39 billion, as investment advisory fees increased to $1.30 billion from $1.26 billion. The gains were partially offset by a decrease in administrative, distribution and servicing fees, which were down to $123.3 million in the quarter compared with the year-ago figure of $131.3 million.

Total operating expenses for the quarter were $767.6 million, an increase from $754.0 million in the same period last year. Compensation and related costs increased to $466.3 million from $454.3 million.