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T. Rowe Price (TROW) Reports Sequential Growth in June AUM

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T. Rowe Price Group, Inc. (TROW - Free Report) announced preliminary assets under management (AUM) of $1.04 trillion for June 2018, reflecting nearly 1% rise from the previous month.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts were $2.2 billion in June.

Month-end total sponsored U.S. mutual funds came in at $626 billion, up marginally from the prior month. Of the total sponsored U.S. mutual funds, around 80% were from stock and blended assets while the remaining came from fixed income and money market.

Total other investment portfolios were $418 billion, reflecting an increase of 1.2% from the previous month. Overall, stock and blended assets accounted for $316 billion or 77% of other investment portfolios while money market and fixed income came in at $98 billion or 23%.

T. Rowe Price recorded $244 billion in target date retirement portfolios, slightly up from $243 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, T. Rowe Price’s diverse and efficient business model is anticipated to help it further improve AUM. Also, its organic growth remains impressive, as indicated by the continuous rise in revenues.

So, we believe, driven by these, the stock has gained 15.6% year to date, versus 4.4% decline recorded by the industry.

T. Rowe currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Among other investment managers, Franklin Resources (BEN - Free Report) announced preliminary AUM by its subsidiaries of $724.1 billion for June 2018. Results display 1.2% rise from $732.8 billion recorded as of May 31, 2018. Net market declines and net outflows during the month were the negatives. Further, the figure dipped 2.5% from the prior-year quarter.

Legg Mason reported preliminary June month-end AUM of $744.6 billion, down from $747.2 billion recorded in May. AUM included net long-term outflows of nearly $1 billion.

Invesco Ltd. (IVZ - Free Report) reported preliminary month-end AUM of $963.3 billion for June 2018. The figure reflects a decrease of 1.4% from the prior month.

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