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T. Rowe Price (TROW) September AUM Down on Lower Equity Assets

T. Rowe Price Group, Inc. TROW has announced preliminary assets under management (AUM) of $1.31 trillion for September 2020. The figure reflects a 2.2% decline from the $1.34 trillion recorded as of Aug 31, 2020.

However, following this development, shares of the company have appreciated marginally.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, totaled $0.5 billion this September.

Month-end total sponsored U.S. mutual funds came in at $716 billion, down 2.6% from August 2020. Of the total sponsored U.S. mutual funds, 89.1% was from equity and blended assets, while the remaining came in from fixed income and money market.

Total other investment portfolios were $594 billion, marking a 2.3% decrease from the previous month. Overall, equity and blended assets accounted for $511 billion or 86% of other investment portfolios, while money-market and fixed income came in at $83 billion or 14%.

T. Rowe Price recorded $297 billion in target date-retirement portfolios, down 2.6% from the $305 billion witnessed in the prior 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 to boost its AUM. Moreover, its organic growth is impressive, as displayed by continued top-line growth.

Shares of the company have gained 47.8% in the past six months compared with 40% growth registered by the industry.

 

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

Performance of Other Asset Managers

Cohen & Steers, Inc. CNS reported preliminary AUM of $70.5 billion as of Sep 30, 2020, which decreased 2.2% from the prior-month level. Market depreciation of $1.2 billion, net outflows of $24 million and distributions outflow of $303 million resulted in this AUM decline.

Franklin Resources BEN announced preliminary AUM by its subsidiaries of $1.42 trillion for September. Results display a 1.6% decrease from the $1.44 trillion recorded as of Aug 31, 2020.

Invesco’s IVZ preliminary month-end AUM of $1,218.2 billion for August represents a 2.2% decrease from the previous month.

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Franklin Resources, Inc. (BEN): 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.

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