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T. Rowe Price's (TROW) May AUM Down 1.3% on Unfavorable Markets

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T. Rowe Price Group, Inc. (TROW - Free Report) reported preliminary assets under management (AUM) of $1.40 trillion as of May 31, 2022. This reflects a 1.3% decrease from the prior month’s $1.42 trillion.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were negligible for May 2022.

T. Rowe Price’s total U.S. mutual fund balance was $707 billion, down 1.5% from April 2022. Of the total U.S. mutual funds balance, almost 80% comprised investments in equity and blended assets, while the remaining came from the fixed income, including money markets portfolio.

T. Rowe Price’s total sub-advised and separate accounts and other investment products were worth $694 billion, marking a 1.1% decline from the prior month. Of this, equity and blended assets, accounting for $510 billion, were down 1.5% sequentially, probably due to unfavorable markets. While fixed income products, including money-market, constituted $142 billion, alternatives products aggregated $42 billion of total other investment portfolios.

Additionally, T. Rowe Price registered $351 billion in target date retirement portfolios, unchanged from the previous month.

TROW remains focused on fortifying its business through planned initiatives like launching investment strategies, enhancing client engagement and investing in advisory services. However, rising operating costs are expected to hinder bottom-line growth. Also, overdependence on investment advisory fees and U.S. equity assets are concerning for the AUM.

Over the past six months, shares of T. Rowe Price have declined 39.6% compared with the industry’s fall of 26.5%.

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Currently, T. Rowe Price carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

Franklin Resources, Inc. (BEN - Free Report) announced its preliminary AUM for May 2022. BEN's month-end AUM of $1,445.9 billion marked a 0.6% decline from the previous month’s tally.

Franklin's AUM was affected by the long-term net outflows, partially offset by the positive impact of markets.

Cohen & Steers (CNS - Free Report) reported preliminary AUM of $94.3 billion as of May 31, 2022, which reflects a decline of 3.8% from the prior-month level. Market depreciation of $3 billion, distributions of $183 million and net outflows of $510 million led to the fall.

CNS recorded total institutional accounts of $37.1 billion at the end of May, down 4.6% from the April-end level. Of the total institutional accounts, advisory accounts were $21.6 billion, while the rest were sub-advisory.


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