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T. Rowe Price Records 1% Sequential Rise in March AUM

Zacks Equity Research

T. Rowe Price Group, Inc. TROW has announced preliminary assets under management (AUM) of $1.08 trillion for March 2019. Results reflect nearly 1% rise from the $1.07 trillion recorded on Feb 28, 2019.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $3 billion in March and $6.1 billion for the quarter-ended Mar 31, 2019.

Month-end total sponsored U.S. mutual funds came in at $631 billion, up nearly 1% from February. 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 $451 billion, reflecting an increase of 1.6% from the previous month. Overall, stock and blended assets accounted for $348 billion or 77.2% of other investment portfolios, while money market and fixed income came in at $103 billion or 22.8%.

T. Rowe Price recorded $258 billion in target date retirement portfolios, up 1.2% from $255 billion in the previous month.

Our Viewpoint

Although regulatory restrictions and fears of global economic slowdown might impede the company’s growth, 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 14.9% in the past three months compared with 12.8% growth of the industry.



T. Rowe Price currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Cohen & Steers CNS reported preliminary AUM of $62.6 billion as of Mar 31, 2019, up 3.1% from the prior-month level. Market appreciation of $1.9 billion and net inflows of $251 million, partly offset by distributions of $298 million, drove this upside.

AllianceBernstein Holding L.P.’s AB preliminary March AUM of $555 billion inched up 1.5% from the prior month.

Franklin Resources BEN also reported preliminary AUM by its subsidiaries of $712.3 billion for March. Results display marginal decline from $714.2 billion recorded as of Feb 28, 2019. Net outflows, partially offset by positive market change and others, led to this fall. Moreover, the figure dipped 3.4% from the previous year.

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