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T. Rowe Price (TROW) April AUM Up 4.9% on a Sequential Basis

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T. Rowe Price Group, Inc. (TROW - Free Report) reported preliminary assets under management (AUM) of $1.59 trillion as of Apr 30, 2021. This reflects a 4.9% increase from $1.52 trillion reported in March 2021.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, aggregated $5.9 billion in April 2021.

Total sponsored U.S. mutual funds came in at $850 billion, up 4.2% from March 2021. Of the total U.S. mutual funds balance, approximately 90% comprised investments in equity and blended assets, while the remaining came from the fixed income and money markets.

Total other investment portfolios were worth $743 billion, marking a rise of 5.8% from the prior month. Overall, equity and blended assets accounted for $652 billion or 88% of total other investment portfolios, while money-market and fixed income products constituted $91 billion or 12%.

T. Rowe Price registered $372 billion in target date-retirement portfolios, reflecting a 5.7% increase from the $352 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.

Performance of Other Asset Management Firms

Cohen & Steers (CNS - Free Report) reported preliminary AUM of $92.8 billion as of Apr 30, 2021, which reflects an increase of 6.7% from the prior-month level. Net inflows of $821 million and market appreciation of $5.2 billion were partially offset by distributions of $200 million.

Invesco Ltd. (IVZ - Free Report) announced preliminary month-end AUM of $1459 billion, up 3.9% from previous month. Positive market returns aided this growth, boosting the AUM by $39 billion. Also, it achieved net long-term inflows of $7.2 billion this month.

Franklin Resources (BEN - Free Report) has reported preliminary AUM balance of $1529.3 billion for April 2021. This reflects 2% growth from $1498.9 billion recorded as of Mar 31, 2021. The improvement in AUM balance mainly reflects benefits from market appreciation, partly offset by cash-management net outflows. 

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