Aug 1 (Reuters) - Asset manager T. Rowe Price ( TROW )

beat second-quarter profit expectations on Friday as a rebound

in equities boosted its assets under management and softened the

hit from outflows.

WHY IT'S IMPORTANT

Stock markets bounced back sharply in the second half of the

quarter after tariff-driven turmoil in April as progress on

trade negotiations eased recession fears.

Assets under management mainly depend on two factors - the

performance of investments and money flowing in and out of the

funds.

KEY QUOTE

"We have developed a broad and ongoing plan to reduce our

expense growth over time while continuing to invest in

capabilities and client reach. We believe that our plan will

drive efficiency to fund investment in the future of the

business," CEO Rob Sharps said in a statement.

CONTEXT

Active asset managers like T. Rowe usually buy and sell

investments more frequently than passive fund managers.

Such firms have ceded market share and grappled with

consistent outflows in recent years due to the growing

popularity of low-cost passive funds, which centers around

investing in index-tracking funds.

BY THE NUMBERS

T. Rowe's assets under management jumped 6.9% to $1.68

trillion in the quarter despite net client outflows of $14.9

billion.

Investment advisory fees, typically a percentage of the AUM,

came in flat at $1.57 billion.

On an adjusted basis, T. Rowe earned $2.24 per share in the

quarter, beating Wall Street expectations of $2.13, according to

estimates compiled by LSEG.