T. Rowe Price Reports 1.8% Sequential Rise in October AUM

T. Rowe Price Group, Inc. TROW has announced preliminary assets under management (AUM) of $1.15 trillion for October 2019. Results reflect nearly 1.8% rise from the $1.13 trillion recorded as of Sep 30, 2019.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $1.1 billion in October.

Month-end total sponsored U.S. mutual funds came in at $652 billion, up 1.4% from September 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 $493 billion, reflecting 2.1% increase from the previous month. Overall, stock and blended assets accounted for $382 billion or 77% of other investment portfolios, while money-market and fixed income came in at $111 billion or 23%.

T. Rowe Price recorded $277 billion in target date-retirement portfolios, up 1.8% from the $272 billion registered 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. Also, its organic growth remains impressive, as indicated by continued growth in revenues.

So, we believe, driven by these, the stock has gained 15% in the past three months compared with 11.9% growth 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’s IVZ preliminary month-end AUM was $1,195.2 billion, up 0.9% from the prior month. This upswing stemmed from favorable market returns, and reinvested distributions. Also, favorable foreign-exchange movement boosted the month’s AUM by $5 billion. These were partly offset by outflows in long-term AUM, money market, and non-management fee earning AUM.

Franklin Resources BEN has also announced preliminary AUM by its subsidiaries of $693.1 billion for October 2019. Results displayed marginal increase from the $692.6 billion recorded as of Sep 30, 2019. Slight net outflows were offset by net market gains. Further, the reported figure inched up 1.5% year on year.

Cohen & Steers CNS reported preliminary AUM of $72 billion as of Oct 31, 2019, up 1.6% from the prior-month level of $70.9 billion. Market appreciation of $967 million and net inflows of $333 million were partly offset by distributions of $186 million.

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