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T. Rowe Price Reports 1% Sequential Growth in April AUM

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T. Rowe Price Group, Inc. (TROW - Free Report) announced preliminary assets under management (AUM) of $1.02 trillion for April 2018. Results reflect nearly 1% rise from $1.01 trillion recorded on Mar 31, 2018.

Client transfers from mutual funds to other portfolios of $2.5 billion were recorded in April 2018.

Month-end total sponsored U.S. mutual funds came in at $614 billion, slightly up from the prior month. Of the total sponsored U.S. mutual funds, around 79% were from stock and blended assets while the remaining came from bond and money market.

Total other investment portfolios were $406 billion, reflecting an increase of 1.2% from the previous month. Overall, stock and blended assets accounted for $309 billion or 76% of other investment portfolios while bond, money market and stable value came in at $97 billion or 24%.

T. Rowe Price recorded $241 billion in target date retirement portfolios, which was slightly up from $240 billion recorded in the prior month.

Our Viewpoint

Although regulatory restrictions and sluggish economic recovery are likely to impair the company’s growth and escalate costs, T. Rowe Price’s diverse and efficient business model is anticipated to help it further improve AUM. Also, its organic growth remains impressive, as indicated by the continuous rise in revenues.

So, we believe, driven by these, shares of T. Rowe Price have gained 25.3% in the last six months, outperforming 1.6% rally of the industry.



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

Competitive Landscape

Among other investment managers, Franklin Resources (BEN - Free Report) has announced preliminary AUM by its subsidiaries of $732.5 billion for April 2018. Results display nearly 1% drop from $737.5 billion recorded as of Mar 31, 2018. Net outflows were primarily responsible for the decline but were partially offset by market appreciation. Further, the figure fell 1.1% from the prior year.

Legg Mason Inc. (LM - Free Report) reported a slight fall in AUM as of Apr 30, 2018 from the prior month. Preliminary month-end AUM came in at $752.3 billion, down from the March 2018 figure of $754.1 billion.

Invesco Ltd. (IVZ - Free Report) reported preliminary month-end AUM of $972.8 billion for April 2018. The figure reflects an increase of 4.1% from the prior month. The rise was mainly driven by the Guggenheim acquisition, favorable market returns, improvement in money market AUM and reinvested distributions. These were partially offset by net long-term outflows and non-management fee earning AUM outflows.

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