T. Rowe Price (TROW) Marks a 2.4% Sequential Rise in July AUM
T. Rowe Price Group, Inc. TROW announced its preliminary assets under management (AUM) for July 2023. The company’s month-end AUM of $1.43 trillion represented a 2.4% increase from the previous month on the back of favorable market conditions.
TROW experienced net outflows of $5.4 billion in July 2023.
At the end of the reported month, equity products and multi-asset products aggregated $752 billion and $467 billion, up 2.7% and 3.1%, respectively, on a sequential basis.
Alternative products of $45 billion remained flat sequentially. Fixed-income products, including the money market, constituted $169 billion. This also stayed unchanged from the previous month.
Nevertheless, T. Rowe Price registered $392 billion in target date retirement portfolios in July, which rose 3.2% from the prior month.
A diversified business model, focus on enhancing investment capabilities, broadening distribution reach and improving client partnerships are expected to aid TROW’s long-term growth.
However, increased dependence on investment advisory fees is concerning, as market fluctuations and a sudden slowdown in overall business activities might hurt its revenues. Additionally, rising expenses might hinder bottom-line growth.
Over the past three months, shares of T. Rowe Price have gained 8% compared with the industry’s growth of 13.5%.
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T. Rowe Price currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Competitive Landscape
Cohen & Steers, Inc. CNS reported a preliminary AUM of $82.3 billion as of Jul 31, 2023, which reflected a jump of 2.4% from the prior-month level. Market appreciation of $1.86 billion and net inflows of $231 million supported the rise. However, it was partially offset by distributions of $162 million.
CNS recorded total institutional accounts of $34.43 billion at the end of July 2023, rising 3.5% from the June-end level. Of the total institutional accounts, advisory accounts were $19.53 billion while the rest were sub-advisory.
Virtus Investment Partners, Inc. VRTS recorded a sequential increase in its preliminary AUM balance for July 2023, driven by favorable market returns. The company reported a month-end AUM of $171.9 billion, which reflected a rise of 2.1% from Jun 30.
Excluded from the above-mentioned AUM balance, other fee-earning assets were $2.6 billion, to which Virtus Investment provided services.
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