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T. Rowe Price (TROW) Sees 4.7% Sequential Rise in August AUM

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T. Rowe Price Group, Inc. (TROW - Free Report) has announced preliminary assets under management (AUM) of $1.34 trillion for August 2020. The figure reflects a 4.7% jump from the $1.28 trillion recorded as of Jul 31, 2020.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $1.3 billion this August.

Month-end total sponsored U.S. mutual funds came in at $735 billion, up 4.4% from July 2020. Of the total sponsored U.S. mutual funds, around 90% was from equity and blended assets, while the remaining came in from fixed income and money market.

Total other investment portfolios were $608 billion, highlighting a 5.2% increase from the previous month. Overall, equity and blended assets accounted for $525 billion or 86% of other investment portfolios, while money-market and fixed income came in at $83 billion or 14%.

T. Rowe Price recorded $305 billion in target date-retirement portfolios, up 3.4% from the $295 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 displayed by continued top-line growth.

Shares of the company have gained 28.9% in the past six months compared with 37% growth registered by the industry.




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

Competitive Landscape

Cohen & Steers (CNS - Free Report) reported preliminary AUM of $72.1 billion as of Aug 31, 2020, up 2.8% from the prior-month level. Market appreciation of $1.2 billion and net inflows of $1 billion were partially offset by distributions of $211 million.

Franklin Resources (BEN - Free Report) announced preliminary AUM by its subsidiaries of $1.44 trillion for August. Results display a 0.7% increase from the $1.43 trillion recorded as of Jul 31, 2020.

Invesco’s (IVZ - Free Report) preliminary month-end AUM of $1,245.8 billion for August represents a 4.2% increase from the previous month.

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