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T. Rowe Price Reports 3.6% Sequential Decline in May 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 May 2019. Results reflect nearly 3.6% decline from the $1.11 trillion recorded on Apr 30, 2019.
Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $0.3 billion in May.
Month-end total sponsored U.S. mutual funds came in at $620 billion, down 4% from April 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 $450 billion, reflecting a decrease of 3.8% from the previous month. Overall, stock and blended assets accounted for $344 billion or 76% of other investment portfolios, while money market and fixed income came in at $106 billion or 24%.
T. Rowe Price recorded $256 billion in target date retirement portfolios, down 3.4% from the previous month’s $265 billion.
Our Viewpoint
Although regulatory restrictions and sluggish economic recovery will likely impair the company’s growth and escalate costs, T. Rowe Price’s diverse and efficient business model is anticipated help it improve 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 15.1% in the past six months compared with 13.9% growth recorded by the industry.
Among other investment managers, Cohen & Steers (CNS - Free Report) reported preliminary AUM of $62.9 billion as of May 31, 2019, down marginally from the prior-month level of $63.1 billion. Market appreciation of $264 million was more than offset by net outflows of $228 million and distributions of $207 million.
Invesco (IVZ - Free Report) announced its AUM for May. The company’s preliminary month-end AUM of $1,159.3 billion increased 18.9% from the prior month. This growth was primarily driven by the acquisition of the OppenheimerFunds, along with modest net long-term inflows and reinvested distributions. These were partly offset by unfavorable market returns, decline in money market AUM and non-management fee earning AUM outflows. Unfavorable foreign-exchange movement dragged down the month’s AUM by $3.7 billion.
Franklin Resources (BEN - Free Report) reported preliminary AUM by its subsidiaries of $695 billion for May. Results display a 3.5% decline from the $720.5 billion recorded as of Apr 30, 2019. Market declines and modest outflows led to this downside. Further, the figure dipped 5.2% year on year.
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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T. Rowe Price Reports 3.6% Sequential Decline in May AUM
T. Rowe Price Group, Inc. (TROW - Free Report) has announced preliminary assets under management (AUM) of $1.07 trillion for May 2019. Results reflect nearly 3.6% decline from the $1.11 trillion recorded on Apr 30, 2019.
Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $0.3 billion in May.
Month-end total sponsored U.S. mutual funds came in at $620 billion, down 4% from April 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 $450 billion, reflecting a decrease of 3.8% from the previous month. Overall, stock and blended assets accounted for $344 billion or 76% of other investment portfolios, while money market and fixed income came in at $106 billion or 24%.
T. Rowe Price recorded $256 billion in target date retirement portfolios, down 3.4% from the previous month’s $265 billion.
Our Viewpoint
Although regulatory restrictions and sluggish economic recovery will likely impair the company’s growth and escalate costs, T. Rowe Price’s diverse and efficient business model is anticipated help it improve 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 15.1% in the past six months compared with 13.9% growth recorded by the industry.
T. Rowe currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Competitive Landscape
Among other investment managers, Cohen & Steers (CNS - Free Report) reported preliminary AUM of $62.9 billion as of May 31, 2019, down marginally from the prior-month level of $63.1 billion. Market appreciation of $264 million was more than offset by net outflows of $228 million and distributions of $207 million.
Invesco (IVZ - Free Report) announced its AUM for May. The company’s preliminary month-end AUM of $1,159.3 billion increased 18.9% from the prior month. This growth was primarily driven by the acquisition of the OppenheimerFunds, along with modest net long-term inflows and reinvested distributions. These were partly offset by unfavorable market returns, decline in money market AUM and non-management fee earning AUM outflows. Unfavorable foreign-exchange movement dragged down the month’s AUM by $3.7 billion.
Franklin Resources (BEN - Free Report) reported preliminary AUM by its subsidiaries of $695 billion for May. Results display a 3.5% decline from the $720.5 billion recorded as of Apr 30, 2019. Market declines and modest outflows led to this downside. Further, the figure dipped 5.2% year on year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>