That's good, but not quite as good as some analysts had hoped, with some early analyses issued after the earnings release calling the quarter "mixed" and "disappointing."
"The basic fundamentals of the company are working really well," he said. "We don't spend a lot of time focusing on the quarter."
Over a one-year period, 80 percent of T. Rowe's funds outperformed the averages, according to Thursday's earnings release. Despite the performance, the firm recorded
Kennedy said he expects slow growth -- both worldwide and at T. Rowe -- to continue, but sounded a cautionary note about whether
"It looks pretty fully priced, relative to history," he said. "We're cautious ... but if the world economy continues to putter along at a reasonable rate and the U.S. economy is part of that, then the company will likely see increased sales."
The company's net income for the second quarter rose 23 percent to
In morning trading, T. Rowe stock fell 2.72 percent to
Analysts predicted the drop would be temporary. They praised the firm for keeping expenses -- including compensation -- down during the quarter.
"Given solid long-term outlook, we would see any weakness today as a particularly attractive opportunity to buy," an initial
Kennedy said the firm expects much of its future growth to come from overseas. It is working to increase the assets under management from international clients from its current 6.2 percent of the total, he said. It already has the investment capability in the international markets, he said.
"There's a lot of capability available, so therefore we expect a lot of our growth going forward to come from outside
The company has roughly 5,750 employees worldwide and is hiring -- there are about 250 openings, with many of the positions in operations and technology located at the firm's
An earlier version of this story cited an incorrect figure for the portion of assets under management represented by international clients and misstated the growth in the firm's assets under management.
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