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T. Rowe Price (TROW) Reports 2.4% Growth in October AUM

Zacks

T. Rowe Price Group, Inc. TROW announced preliminary assets under management (AUM) of $971 billion for October 2017. Results reflect 2.4% rise from $948 billion recorded as of Sep 30, 2017.

Client transfers from mutual funds to other portfolios of $2.5 billion were recorded in October 2017.

Month-end total sponsored U.S. mutual funds came in at $597 billion, up nearly 2.1% from the prior month. Of the total sponsored U.S. mutual funds, around 79% were from stock and blended assets, while the remaining 21% came from the bond and money market.

Total other investment portfolios were $374 billion, reflecting an increase of 3% from the previous month. Overall, stock and blended assets accounted for $282 billion or 75.4% of other investment portfolios, while bond, money market and stable value came in at $92 billion or 24.6%.

T. Rowe Price recorded $228 billion in target date retirement portfolios, which was up 2.2% from $223 billion recorded in the prior month.

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 to help it further improve AUM. Also, its organic growth remains impressive, as indicated by the continuous rise in revenues.

So, we believe, driven by these, shares of T. Rowe Price have gained 29.7% in the last six months, outperforming 13.7% rally of 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, Franklin Resources Inc. BEN announced preliminary AUM by its subsidiaries of $750.7 billion for October 2017. Results displayed a marginal fall from $753.2 billion recorded as of Sep 30, 2017. However, the figure moved up 3.8% from the prior-year quarter.

Legg Mason Inc. LM, headquartered at Baltimore, reported a marginal rise in AUM, as of Oct 31, 2017, compared with the prior month. Preliminary month-end AUM came in at $755.2 billion, marginally up from September 2017.

Invesco Ltd. IVZ announced an increase in its preliminary month-end AUM for October 2017. The company’s AUM came in at $928.4 billion, rising 1.2% from the previous month. The rise reflected favorable market returns, inflows in PowerShares QQQs and an increase in Money Market AUM, partially offset by net long-term outflows. Also, FX lowered October AUM by $2.8 billion.

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