T. Rowe Price (TROW) Reports Sequential Growth in July AUM

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T. Rowe Price Group, Inc.TROW announced preliminary assets under management (AUM) of $1.07 trillion for July 2018. Results reflect nearly 2.9% rise from $1.04 trillion recorded on Jun 30, 2018.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $0.5 billion in July.

Month-end total sponsored U.S. mutual funds came in at $638 billion, up 1.9% from the prior month. Of the total sponsored U.S. mutual funds, around 80% were from stock and blended assets, while the remaining came in from fixed income and money market.

Total other investment portfolios were $427 billion, reflecting an increase of 2.2% from the previous month. Overall, stock and blended assets accounted for $329 billion or 77% of other investment portfolios, while money market and fixed income came in at $98 billion or 23%.

T. Rowe Price recorded $251 billion in target date-retirement portfolios, marginally up from $244 billion recorded in June.

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, the company's organic growth remains impressive, as indicated by the continued rise in revenues.

So, we believe, driven by these, the stock has gained 10.8% in the last six months, against 6.9% decline registered by 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 has announced preliminary AUM by its subsidiaries of $733.7 billion for July 2018. Results display 1.3% rise from $724.1 billion recorded as of Jun 30, 2018. Strong market gains were recorded partly offset by net outflows. Furthermore, the figure dipped 2.5% from the previous year.

Invesco Ltd. IVZ reported preliminary month-end AUM of $987.8 billion for July 2018. The figure reflects a rise of 2.5% from the prior month. This improvement was mainly driven by favorable market returns, increase in money market AUM, full consolidation of the Invesco Great Wall joint venture and reinvestment of distributions. These were partially offset by net long-term outflows and non-management fee earning AUM outflows.

Cohen & Steers CNS reported preliminary AUM of $60.5 billion as of Jul 31, 2018, up almost 1% from the prior-month level. Market appreciation of $653 million was partially offset by net outflows of $72 million and distributions of $261 million.

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T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: TROW , IVZ , BEN , CNS

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