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T. Rowe Price (TROW) Sees Sequential Fall in October AUM

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T. Rowe Price Group, Inc. (TROW - Free Report) has announced preliminary assets under management (AUM) of $1.3 trillion for October 2020. The figure reflects a marginal decline from the $1.31 trillion recorded as of Sep 30, 2020.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $1.1 billion this October.

Month-end total sponsored U.S. mutual funds came in at $707 billion, down 1.3% from September 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 $593 billion, highlighting a slight decrease from the previous month. Overall, equity and blended assets accounted for $507 billion or 85% of other investment portfolios, while money-market and fixed income came in at $86 billion or 15%.

T. Rowe Price recorded $293 billion in target date-retirement portfolios, down 1.3% from the $297 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 the continued top-line growth.

Shares of the company have gained 30.1% in the past six months compared with 32.9% growth registered by the industry.



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

Competitive Landscape

Franklin Resources (BEN - Free Report) announced preliminary AUM by its subsidiaries of $1.39 trillion for October. Results displayed a 2.1% decrease from the $1.42 trillion recorded as of Sep 30, 2020.

Cohen & Steers (CNS - Free Report) reported preliminary AUM of $71.3 billion as of Oct 31, 2020, which inched up 1% from the prior-month level. Net inflows of $2 billion were partially offset by market depreciation of $1.1 billion and distributions of $219 million.

Invesco’s (IVZ - Free Report) preliminary month-end AUM of $1,206.5 billion for October represents a 1% decrease from the prior month.

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