Assets under management (AUM) remain one of the most important growth drivers for T. Rowe Price Group TROW, as the company generates the bulk of its revenues from investment advisory fees tied to the AUM levels. As of March 31, 2026, 90.6% of its net revenues were generated from investment advisory fees.
In the first quarter of 2026, T. Rowe Price’s average AUM increased 9.1% year over year to $1.71 trillion, supporting a 5.3% rise in net revenues to $1.86 billion. This highlights how a larger asset base can directly benefit the company’s top line. The AUM balance witnessed a compound annual growth rate (CAGR) of 9.7% over 2011-2025.
AUM Growth Trend
Image Source: T. Rowe Price Group
A key strength for T. Rowe Price is its diversified AUM mix across equities, fixed income, multi-asset products and alternatives. While equity strategies, especially U.S. growth-oriented offerings, continued to face outflows, other asset classes showed resilience. Multi-asset, fixed income and alternative products recorded positive net flows, helping reduce the impacts of weakness in equities. This diversification is important because it gives the company more than one avenue for growth, especially at a time when active equity managers face pressure from the rising popularity of passive products.
TROW is also working to expand its investment capabilities through product innovation and strategic partnerships. Its alternative credit offerings, supported by Oak Hill Advisors, including private credit and flexible credit income products, are aimed at meeting investor demand for income and diversification. These initiatives could help strengthen future AUM growth and reduce the dependence on traditional equity strategies.
However, challenges remain. T. Rowe Price recorded firmwide net outflows of $13.7 billion in the first quarter of 2026, showing that client redemptions are still concerning. Continued pressure in U.S. equity products may weigh on organic growth if inflows in other categories are not strong enough to offset the decline. In addition, stress in private credit markets could dampen investor appetite for alternative credit strategies and increase redemption risks, particularly if concerns around liquidity, valuations, leverage and credit quality intensify.
Overall, TROW’s diversified AUM base remains a meaningful strength. Although equity outflows remain a near-term challenge, growth in multi-asset, fixed income and alternatives could help stabilize revenues. However, the company’s expansion into private credit will require disciplined risk management to sustain investor confidence and support long-term AUM growth.
AUM Performance of Other Asset Managers
Franklin Resources’ BEN AUM witnessed a CAGR of 3.1% over the past five fiscal years (2021-2025), with the rising trend continuing in the first quarter of fiscal 2026. The gain was driven by its efforts to diversify into high-demand asset classes, including alternative investments, and by favorable net flows from its regionally focused distribution model. Strategic acquisitions have also supported AUM growth, enabling Franklin Resources to expand its global footprint and strengthen its non-U.S. business.
Apollo Global Management’s APO AUM saw a CAGR of 19.6% over the past three years (2022-2025), with the uptrend continuing in the first quarter of 2026. The increase in Apollo’s AUM is primarily driven by growth in retirement services client assets, platform subscriptions and new financing facilities. The acquisition of Bridge Investment Group Holding nearly doubled Apollo’s real estate AUM to more than $110 billion. By 2029, Apollo expects its total AUM to reach $1.5 trillion by scaling its private equity business.
TROW’s Price Performance & Zacks Rank
Over the past three months, shares of T. Rowe Price have gained 21.6% compared with the industry’s rise of 10%.
Price Performance
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
