T. Rowe Price Reports 1% Sequential Increase In July AUM

T. Rowe Price Group, Inc. (NASDAQ:TROW) has announced preliminary assets under management (AUM) of $1.14 trillion for July 2019. Results reflect nearly 1% rise from the $1.13 trillion recorded on Jun 30, 2019.

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

Month-end total sponsored U.S. mutual funds were $655 billion, up 1.1% from June 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 $481 billion, reflecting an increase of nearly 1% from the previous month. Overall, stock and blended assets accounted for $372 billion or 77% of other investment portfolios, while money market and fixed income totaled $109 billion or 23%.

T. Rowe Price recorded $271 billion in target date retirement portfolios, up nearly 1% from the previous month’s $269 billion.

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 help it improve its AUM. Also, its organic growth remains impressive, as indicated by the continued growth in revenues.

So, we believe, driven by these, the stock has gained 11.2% in the past six months against 4.1% decline recorded by the industry.

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

Competitive Landscape

Among other investment managers, Cohen & Steers (NYSE:CNS) reported preliminary AUM of $63.1 billion as of Jul 31, 2019, up nearly 1.2% from the prior-month level of $62.4 billion. Market appreciation of $794 million and net inflows of $255 million were partly offset by a conversion of $119 million from certain institutional accounts to model-based portfolios (excluded from AUM) and distributions of $181 million.

Invesco (NYSE:IVZ) has announced its AUM for July 2019. The company's preliminary month-end AUM of $1,198.7 billion increased slightly from the prior month. The rise was mainly driven by non-management fee earning AUM inflows, favorable market returns, increase in money market AUM and reinvested distributions.

Legg Mason Inc. (NYSE:LM) reported marginal growth in AUM as of Jul 31, 2019, from the previous month. Preliminary month-end AUM came in at $780.5 billion, up from the June 2019 figure of $780.2 billion. The company’s July AUM displayed $0.1 billion fixed income inflows and alternative inflows of $1.6 billion, partly offset by liquidity and equity net outflows of $2.8 billion and $1.6 billion, respectively.

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