T. Rowe Price (TROW) Reports 2.7% Growth in February AUM
T. Rowe Price Group, Inc. TROW reported preliminary assets under management (AUM) of $1.50 trillion as of Feb 28, 2021. This reflects a 2.7% increase from the prior month’s $1.46 trillion.
Client transfers from mutual funds to other portfolios, including trusts and separate accounts, aggregated $1.1 billion in February 2021.
Total sponsored U.S. mutual funds came in at $809 billion, up 2.4% from January 2021. Of the total U.S. mutual funds balance, approximately 90% comprised investments in equity and blended assets, while the remaining came from the fixed income and money markets.
Total other investment portfolios were worth $692 billion, marking a rise of 2.7% from the prior month. Overall, equity and blended assets accounted for $602 billion or 87% of total other investment portfolios, while money-market and fixed income products constituted $90 billion or 13%.
T. Rowe Price registered $344 billion in target date-retirement portfolios, reflecting a 3.3% increase from $333 billion witnessed in the previous month.
Our Viewpoint
T. Rowe Price’s robust balance sheet provides sufficient liquidity, thereby supporting the roll out of new funds. Also, its diverse business model is anticipated to stoke AUM growth. However, mounting costs and a stringent regulatory environment across the investment management industry might be headwinds for the long term.
Over the past six months, shares of T. Rowe Price have risen 37.9%, outperforming the industry’s rally of 33%.
Currently, T. Rowe Price carries 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 $83.1 billion as of Feb 28, 2021, an increase of $1.9 billion from Jan 31, 2021. The increase was due to net inflows of $229 million and market appreciation of $1.9 billion, partially offset by distributions of $202 million.
Invesco Ltd. IVZ reported preliminary month-end AUM of $1,391.5 billion as of Mar 9, 2021, an increase of 1.8% versus previous month-end. Total net inflows were $11.2 billion.
Franklin Resources BEN recorded a preliminary AUM balance of $1500.5 billion for February 2021. This reflected a marginal growth from $1494.4 billion recorded as of Jan 31, 2021.
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