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T. Rowe Price's AUM Climbs 6.9% in 1H 2025: What's Driving Growth?
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Key Takeaways
T. Rowe Price's AUM grew 6.9% year over year in 1H 2025, reaching $1.68 trillion in client assets.
Target-date funds drove $520B of AUM, nearly 66% of TROW's total, with CITs fueling rapid growth.
ETFs and alternatives expansion are strengthening TROW's diversification beyond active equity funds.
T. Rowe Price Group (TROW - Free Report) registered 6.9% year-over-year growth in assets under management (AUM) in the first half of 2025, ending the period with $1.68 trillion. The increase was primarily driven by favorable market appreciation and continued strength in multi-asset and fixed income.
T. Rowe Price has been recording a rise in the AUM balance. Over the four years (2020–2024), TROW’s AUM balance witnessed a compound annual growth rate (CAGR) of 2.3%.
AUM Balance Trend
Image Source: Zacks Investment Research
The company’s AUM performance also underpins its long-term stability. For the five years ended June 30, 2025, 50% of T. Rowe Price U.S. mutual funds' AUM outperformed the Morningstar median, whereas 52% outperformed the passive peer median. As of June 30, 2025, investment advisory clients domiciled outside the United States accounted for 8.7% of AUM, reflecting geographic diversification.
A cornerstone of T. Rowe Price’s business remains its retirement franchise, especially target-date funds. These portfolios represented $520 billion—nearly 66% of total AUM—at the end of June 20, 2025. A significant portion of this is held in collective investment trusts (CITs), which have grown rapidly due to their cost-effectiveness and scalability for large retirement plans. Beyond retirement solutions, the company is broadening its growth engines through ETFs and an expanding alternatives platform aimed at institutional investors. This diversification helps cushion ongoing pressure from outflows in traditional active equity funds.
Despite headwinds from net client outflows, TROW’s strong presence in target-date funds, expanding ETF and alternatives platforms, and prudent financial management will continue to support its AUM growth trajectory.
How TROW Stacks Up Against LAZ & BEN in AUM
TROW’s peers like Franklin Resources (BEN - Free Report) and Lazard Ltd. (LAZ - Free Report) have also been focused on expanding their AUM base. As of fiscal 2024, Franklin reported a five-year AUM CAGR of 3.1%, while Lazard posted an eight-year CAGR of 1.7% through 2024. However, in the first half of fiscal 2025, the total AUM balance of Franklin decreased. In contrast, Lazard’s total AUM balance witnessed improvement in the first half of 2025.
Franklin’s efforts to diversify its business into asset classes that are seeing growing client demand, like alternative asset classes, are supporting AUM growth. Similarly, Lazard has expanded its asset management franchise by acquiring Truvvo Partners in March 2023, adding $3.8 billion in AUM. The firm also launched Lazard Elaia Capital in partnership with Elaia Partners to provide private market solutions in the technology sector.
TROW’s Price Performance and Zacks Rank
Shares of TROW have gained 10.7% compared with the industry’s growth of 11.9% in the past three months.
Image: Bigstock
T. Rowe Price's AUM Climbs 6.9% in 1H 2025: What's Driving Growth?
Key Takeaways
T. Rowe Price Group (TROW - Free Report) registered 6.9% year-over-year growth in assets under management (AUM) in the first half of 2025, ending the period with $1.68 trillion. The increase was primarily driven by favorable market appreciation and continued strength in multi-asset and fixed income.
T. Rowe Price has been recording a rise in the AUM balance. Over the four years (2020–2024), TROW’s AUM balance witnessed a compound annual growth rate (CAGR) of 2.3%.
AUM Balance Trend
Image Source: Zacks Investment Research
The company’s AUM performance also underpins its long-term stability. For the five years ended June 30, 2025, 50% of T. Rowe Price U.S. mutual funds' AUM outperformed the Morningstar median, whereas 52% outperformed the passive peer median. As of June 30, 2025, investment advisory clients domiciled outside the United States accounted for 8.7% of AUM, reflecting geographic diversification.
A cornerstone of T. Rowe Price’s business remains its retirement franchise, especially target-date funds. These portfolios represented $520 billion—nearly 66% of total AUM—at the end of June 20, 2025. A significant portion of this is held in collective investment trusts (CITs), which have grown rapidly due to their cost-effectiveness and scalability for large retirement plans. Beyond retirement solutions, the company is broadening its growth engines through ETFs and an expanding alternatives platform aimed at institutional investors. This diversification helps cushion ongoing pressure from outflows in traditional active equity funds.
Despite headwinds from net client outflows, TROW’s strong presence in target-date funds, expanding ETF and alternatives platforms, and prudent financial management will continue to support its AUM growth trajectory.
How TROW Stacks Up Against LAZ & BEN in AUM
TROW’s peers like Franklin Resources (BEN - Free Report) and Lazard Ltd. (LAZ - Free Report) have also been focused on expanding their AUM base. As of fiscal 2024, Franklin reported a five-year AUM CAGR of 3.1%, while Lazard posted an eight-year CAGR of 1.7% through 2024. However, in the first half of fiscal 2025, the total AUM balance of Franklin decreased. In contrast, Lazard’s total AUM balance witnessed improvement in the first half of 2025.
Franklin’s efforts to diversify its business into asset classes that are seeing growing client demand, like alternative asset classes, are supporting AUM growth. Similarly, Lazard has expanded its asset management franchise by acquiring Truvvo Partners in March 2023, adding $3.8 billion in AUM. The firm also launched Lazard Elaia Capital in partnership with Elaia Partners to provide private market solutions in the technology sector.
TROW’s Price Performance and Zacks Rank
Shares of TROW have gained 10.7% compared with the industry’s growth of 11.9% in the past three months.
Three-Month Price Performance
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.