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T. Rowe Price (TROW) Records 1.5% Increase in September AUM

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T. Rowe Price Group, Inc. (TROW - Free Report) announced preliminary assets under management (AUM) of $948 billion for September 2017. Results reflect 1.5% rise from $934 billion as of Aug 31, 2017.

Client transfers from mutual funds to other portfolios of $2.9 billion were recorded in September 2017.

Month-end total sponsored U.S. mutual funds came in at $585 billion, up nearly 1% from the prior month. Of the total sponsored U.S. mutual funds, around 79% were from stock and blended assets, while the remaining 21% came from bond and money market.

Total other investment portfolios were $363 billion, reflecting an increase of 2.3% from the previous month. Overall, stock and blended assets accounted for $273 billion or 75.2% of other investment portfolios, while bond, money market and stable value came in at $90 billion or 24.8%.

T. Rowe Price recorded $223 billion in target date retirement portfolios, which was up 1.4% from $220 billion in the prior month.

Our Viewpoint

Although, regulatory restrictions and sluggish economic recovery are likely to impair the company’s growth and escalate costs, its diverse and efficient business model is expected to help it further grow its AUM. Also, T. Rowe Price’s organic growth remains impressive as can be seen from a continuous rise in revenues.

So, we believe, driven by these, shares of T. Rowe Price have gained 32.2% in the last six months, outperforming 19.3% rally of the industry it belongs to.



T. Rowe currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Investment Managers

Franklin Resources, Inc. (BEN - Free Report) declared preliminary AUM of $753.2 billion by its subsidiaries for September 2017, reflecting an increase of 1% from the prior month.

On the other hand, Invesco Ltd. (IVZ - Free Report) announced an increase in its preliminary month-end AUM for September 2017. The company’s AUM came in at $917.5 billion, a rise of 1.2% from $906.7 billion in the prior month.

Legg Mason, Inc.'s preliminary AUM of $754.4 billion for the month of September 2017 increased marginally from the prior month.

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