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T. Rowe Price (TROW) March AUM Sees 1.3% Sequential Growth

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T. Rowe Price Group, Inc. (TROW - Free Report) reported preliminary assets under management (AUM) of $1.52 trillion as of Mar 31, 2021. This reflects a 1.3% increase from the prior month’s $1.50 trillion.

Following the announcement, shares of T. Rowe Price have depreciated 4.1%.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, aggregated $1.7 billion in March 2021.

Total sponsored U.S. mutual funds came in at $816 billion, up marginally from February 2021. Of the total U.S. mutual funds balance, approximately 83% comprised investments in equity and blended assets, while the remaining came from the fixed income and money markets.

Total other investment portfolios were worth $702 billion, marking a rise of 1.4% from the prior month. Overall, equity and blended assets accounted for $612 billion or 87% of total other investment portfolios, while money-market and fixed income products constituted $90 billion or 13%.

T. Rowe Price registered $352 billion in target date-retirement portfolios, reflecting a 2.3% increase from the $344 billion witnessed in the previous month.

Our Viewpoint

T. Rowe Price’s robust balance sheet provides sufficient liquidity, thereby supporting the roll out of new funds. Also, its diverse business model is anticipated to stoke AUM growth. However, elevated costs and a stringent regulatory pressure across the investment management industry might be headwinds for the long term.

Over the past six months, shares of T. Rowe Price have risen 19.1%, underperforming the industry’s growth of 26.1%.

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 $87 billion as of Mar 31, 2021, marking an increase of $4 billion from Feb 28, 2021. This increase resulted from net inflows of $1.5 billion and market appreciation of $2.7 billion, partially offset by distributions of $281 million.

Invesco Ltd. (IVZ - Free Report) registered preliminary month-end AUM of $1,404.1 billion as of Mar 31, 2021, which increased marginally from the end of the previous month. Total net inflows were $6.4 billion.

Franklin Resources BEN recorded a preliminary AUM balance of $ 1,498.9 billion for March 2021. This highlighted a marginal decline from $1,500.5 billion recorded as of Feb 28, 2021.

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