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T. Rowe Price Reports 2% Sequential Gain in November AUM

T. Rowe Price Group, Inc. TROW has announced preliminary assets under management (AUM) of $1.03 trillion for November 2018. Results reflect nearly 2% rise from $1.01 trillion recorded on Oct 31, 2018.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $0.6 billion in November.

Month-end total sponsored U.S. mutual funds came in at $611 billion, up 1.5% from the last month. Of the total sponsored U.S. mutual funds, around 79% were from stock and blended assets, while the remaining came from fixed income and money market.

Total other investment portfolios were $421 billion, reflecting an increase of 2.4% from the previous month. Overall, stock and blended assets accounted for $323 billion or 77% of other investment portfolios, while money market and fixed income came in at $98 billion or 23%.

T. Rowe Price recorded $243 billion in target date retirement portfolios, up 2.1% from $238 billion recorded in the previous 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 will likely help it improve 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 24.2% in the past two years, as against the 6.1% decline of the industry.



T. Rowe currently has 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, Franklin Resources BEN has announced preliminary AUM by its subsidiaries of $683.3 billion for November 2018. Results display marginal rise from $682.7 billion recorded as of Oct 31, 2018. Net market gains, partially offset by net outflows, led to the increase.

Legg Mason Inc. LM reported around 1.2% rise in AUM, as of Nov 30, from the prior month. Preliminary month-end AUM came in at $741.6 billion, up from $733 billion recorded in October.

Invesco’s IVZ preliminary month-end AUM for November 2018 of $926 billion fell less than 0.1% from the prior month. Net long-term outflows and non-management fee earning AUM outflows were the primary reasons behind the decline in total AUM. These were partially offset by favorable market returns, higher money market AUM and reinvested distributions. Also, foreign exchange increased the month’s AUM by $0.2 billion.

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