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T. Rowe Price Reports 5.3% Sequential Increase in May AUM

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T. Rowe Price Group, Inc. (TROW - Free Report) has announced preliminary assets under management (AUM) of $1.19 trillion for May 2020. The figure reflects a 5.3% jump from the $1.13 trillion recorded as of Apr 30, 2020.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $1.9 billion in May.

Month-end total sponsored U.S. mutual funds came in at $653 billion, up 5.3% from April 2020. Of the total sponsored U.S. mutual funds, around 89% was from equity and blended assets, while the remaining came in from fixed income and money market.

Total other investment portfolios were $533 billion, highlighting a 5.5% increase from the previous month. Overall, equity and blended assets accounted for $457 billion or 86% of other investment portfolios, while money-market and fixed income came in at $76 billion or 14%.

T. Rowe Price recorded $277 billion in target date-retirement portfolios, up 4.1% from the $266 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 gained 11% in the past three months compared with the industry’s growth of 23.7%.



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 (BEN - Free Report) announced preliminary AUM by its subsidiaries of $617.6 billion for May. Results displayed a 3.04% increase from the $599.4 billion recorded as of April 30, 2020. Lower net outflows and a solid market performance led to this upsurge. However, the reported figure dropped 11.1% year on year.

Invesco’s (IVZ - Free Report) preliminary May-end AUM of $1,142.5 billion represents a rise of 2.1% from the previous month. This increase resulted from favorable market returns, partly offset by net outflows. Notably, an unfavorable foreign-exchange movement resulted in a fall in the monthly AUM by $1.4 billion.

Legg Mason Inc. reported 2.2% growth in AUM balance as of May 31, 2020, from the previous month. Preliminary month-end AUM came in at $780.2 billion, up from the April 2020 figure of $763.1 billion.

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