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T. Rowe Price (TROW) Records Marginal Increase in August AUM

Zacks

T. Rowe Price Group, Inc. TROW announced preliminary assets under management (AUM) of $934 billion for August 2017. Results reflect nearly 1% rise from $927 billion as of Jul 31, 2017.

Client transfers from mutual funds to other portfolios of $1.4 billion were recorded in August 2017.

Month-end total sponsored U.S. mutual funds came in at $579 billion, up nearly 1% from the prior month. Of the total sponsored U.S. mutual funds, around 78.6% were from stock and blended assets while the remaining 21.4% came from bond and money market.

Total other investment portfolios were $355 billion, up almost 1% from the previous month. Overall, stock and blended assets accounted for $267 billion or 75.2% of other investment portfolios while bond, money market and stable value came in at $88 billion or 24.8%.

T. Rowe Price recorded $220 billion in target date retirement portfolios, which was marginally up from $219 billion in the prior month.

Our Viewpoint

Though the company’s business model helps it diversify its AUM, regulatory restrictions and sluggish economic recovery might impair growth and escalate costs. Also, T. Rowe Price is subject to numerous regulations by the U.S. and non-U.S. regulators, which pose concerns for its operations and may even hurt profitability.

So we believe, driven by these concerns, shares of T. Rowe Price have gained 12% year to date, underperforming 18.2% rally of the industry it belongs to.



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.

Performance of Other Investment Managers

Franklin Resources, Inc. BEN declared preliminary AUM of $747.4 billion by its subsidiaries for August 2017, a 1% decline from the prior month. Also, Legg Mason, Inc. LM recorded a marginal dip in August AUM of $752.4 billion.

On the other hand, Invesco IVZ announced an increase in its preliminary month-end AUM for August 2017. The company’s AUM came in at $906.7 billion, a rise of 3.4% from $876.9 billion in the prior month.

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