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T. Rowe Price Reports 11.9% Sequential Rise in April AUM

T. Rowe Price Group, Inc. TROW has announced preliminary assets under management (AUM) of $1.13 trillion for April 2020. The figure reflects an 11.9% jump from the $1.01 trillion recorded on Mar 31, 2020.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $1.4 billion in April.

Month-end total sponsored U.S. mutual funds came in at $620 billion, up 10.3% from March 2020. Of the total sponsored U.S. mutual funds, around 88% was from equity and blended assets, while the remaining came in from fixed income and money market.

Total other investment portfolios were $505 billion, highlighting a 13% increase from the previous month. Overall, equity and blended assets accounted for $430 billion or 85% of other investment portfolios, while money-market and fixed income came in at $75 billion or 15%.

T. Rowe Price recorded $266 billion in target date-retirement portfolios, up 9.9% from the $242 billion witnessed in the prior month.

Our Viewpoint

Although regulatory restrictions and sluggish economic recovery might impair the company’s growth and escalate costs, T. Rowe Price’s diverse and efficient business model is anticipated to boost its AUM. Moreover, its organic growth is impressive, as indicated by continued growth in revenues.

The stock has lost 17.9% in the past three months compared with the industry’s decline of 21.4%.



T. Rowe currently carries 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 announced preliminary AUM by its subsidiaries of $599.4 billion for April 2020. Results displayed a 3.3% increase from the $580.3 billion recorded as of Mar 31, 2020. Lower net outflows and a strong market performance led to the upsurge. However, the reported figure dropped 16.8% year on year.

Cohen & Steers CNS reported preliminary AUM of $62.1 billion as of Apr 30, 2020, which increased 8.3% from the prior-month level. Market appreciation of $4.2 billion and net inflows of $744 million were partially offset by distributions of $198 million.

Invesco IVZ announced its AUM for April 2020. The company’s preliminary month-end AUM of $1,118.6 billion represents a 6.2% increase from the previous month. This was driven by favorable market returns, which boosted the AUM by $63 billion. Further, FX increased AUM by $2.1 billion.

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Franklin Resources Inc (BEN): Free Stock Analysis Report
 
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