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T. Rowe Price Reports Sequential Growth in February AUM

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T. Rowe Price Group, Inc. (TROW - Free Report) has announced preliminary assets under management (AUM) of $1.07 trillion for February 2019. Results reflect nearly 3% rise from $1.04 trillion recorded on Jan 31, 2019.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $0.4 billion in February.

Month-end total sponsored U.S. mutual funds came in at $625 billion, up 3% from January 2019. Of the total sponsored U.S. mutual funds, around 80% was from stock and blended assets while the remaining came in from fixed income and money market.

Total other investment portfolios were $444 billion, reflecting an increase of 2.8% from the previous month. Overall, stock and blended assets accounted for $343 billion or 77% of other investment portfolios, while money market and fixed income came in at $101 billion or 23%.

T. Rowe Price recorded $255 billion in target date retirement portfolios, up 3.2% from $247 billion in the previous month.

Our Viewpoint

Although regulatory restrictions and fears of global economic slowdown are likely to impact the company’s growth, T. Rowe Price’s diverse and efficient business model will likely boost its AUM. Also, its organic growth remains impressive, as indicated by the continued growth in revenues.

So, we believe, driven by these, the stock has gained 9.2% in the past three months compared with 12.3% growth of 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

Cohen & Steers (CNS - Free Report) has reported preliminary AUM of $60.8 billion as of Feb 28, 2019, up 1.3% from the prior-month level. Market appreciation of $624 million and net inflows of $350 million, partly offset by distributions of $196 million, drove this upside.

Invesco (IVZ - Free Report) announced preliminary month-end AUM of $945.7 billion as of Feb 28, 2019, up 1.6% from the prior month. Favorable market returns, increase in money market AUM and reinvested distributions were the primary reasons behind this rise in total AUM.

Franklin Resources (BEN - Free Report) has announced preliminary AUM by its subsidiaries of $714.2 billion for February 2019. Results display 5.3% growth from the $678.3 billion recorded as of Jan 31, 2019. Net market gains, along with the Benefit Street Partners L.L.C. acquisition, partially offset by net outflows, led to this upside.

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