T. Rowe Price Reports 1.8% Sequential Decline in August AUM

T. Rowe Price Group, Inc. TROW has announced preliminary assets under management (AUM) of $1.12 trillion for August 2019. Results reflect nearly 1.8% decline from the $1.14 trillion recorded on Jul 31, 2019.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $2.2 billion in August.

Month-end total sponsored U.S. mutual funds came in at $647 billion, down 1.2% from July 2019. Of the total sponsored U.S. mutual funds, around 80% was from stock and blended assets, while the remaining came in from fixed income and money market.

Total other investment portfolios were $477 billion, reflecting slight decline from the previous month. Overall, stock and blended assets accounted for $366 billion or 77% of other investment portfolios, while money market and fixed income came in at $111 billion or 23%.

T. Rowe Price recorded $269 billion in target date retirement portfolios, marginally down from $271 billion registered in the previous month.

Our Viewpoint

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

So, we believe, driven by these, the stock has gained 13.2% in the past three months as against the 5.3% decline recorded by the industry.

T. Rowe currently carries 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, Invesco IVZ has announced its AUM for August 2019. The company’s preliminary month-end AUM of $1,175.1 billion decreased 2% from the prior month. This decline primarily stemmed from net long-term outflows, reduced money market AUM, foreign exchange, non-management fee earning AUM outflows and unfavorable market returns. These were partly offset by reinvested distributions. Notably, unfavorable foreign-exchange movement reduced the month’s AUM by $2.2 billion.

Franklin Resources BEN also announced preliminary AUM by its subsidiaries of $690.6 billion for August. Results display 2.7% decrease from the $709.5 billion recorded as of Jul 31, 2019. Slight net outflows and net market declines led to this downside. Further, the reported figure went down 4.4% year on year.

Cohen & Steers CNS reported preliminary AUM of $69.6 billion as of Aug 31, 2019, up 3% from the prior-month level of $67.5 billion. Market appreciation of $2 billion and net inflows of $240 million were partly offset by distributions of $186 million.

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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.

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