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T. Rowe Price (TROW) Reports 4.9% Sequential Rise in July AUM

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T. Rowe Price Group, Inc. (TROW - Free Report) has announced preliminary assets under management (AUM) of $1.28 trillion for July 2020. The figure reflects a 4.9% jump from the $1.22 trillion recorded on Jun 30, 2020.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $0.6 billion this July.

Month-end total sponsored U.S. mutual funds came in at $704 billion, up 4.9% from June 2020. Of the total sponsored U.S. mutual funds, around 89% was from equity and blended assets, while the remaining came in from fixed income and money market.

Total other investment portfolios were $578 billion, highlighting a 5.3% increase from the previous month. Overall, equity and blended assets accounted for $497 billion or 86% of other investment portfolios, while money-market and fixed income came in at $81 billion or 14%.

T. Rowe Price recorded $295 billion in target date-retirement portfolios, up 3.9% from the $284 billion witnessed in the prior month.

Our Viewpoint

Although regulatory restrictions and sluggish economic recovery might impair the company’s growth and escalate costs, T. Rowe Price’s diverse and efficient business model is anticipated to boost its AUM. Moreover, its organic growth is impressive, as indicated by continued growth in revenues.

Shares of the company have gained 23% in the past three months compared with 20.5% growth registered by the industry.



Currently, T. Rowe Price carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Cohen & Steers (CNS - Free Report) reported a preliminary AUM of $70.1 billion as of Jul 31, 2020, which increased 5.7% from the prior-month level. Market appreciation of $2.7 billion and net inflows of $1.3 billion were partially offset by distributions of $209 million.

Franklin Resources (BEN - Free Report) announced preliminary AUM by its subsidiaries of $1.43 trillion for July. Results displayed a 2.9% rise from the $1.39 trillion recorded as of Jun 30, 2020. The increased AUM includes about $797 billion from the acquisition of Legg Mason, closed on Jul 31, 2020.

Lazard Ltd. (LAZ - Free Report) recorded a 3.6% rise in preliminary AUM as of Jul 31, 2020, from the prior month. Total AUM came in at $222.5 billion, up from the June 2020 figure of $214.7 billion.

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