T. Rowe Price's (TROW) February AUM Rises 3.9% to $1.5T
T. Rowe Price Group, Inc. TROW announced its preliminary assets under management (AUM) of $1.50 trillion for February 2024. The figure reflected a 3.9% rise from last month.
TROW experienced net outflows of $2 billion in February 2024.
At the end of the reported month, equity products and multi-asset products aggregated $785 billion and $504 billion, rising 5.1% and 3.7%, respectively, on a sequential basis. Alternative products of $48 billion increased 2.1% on a sequential basis. T. Rowe Price registered $428 billion in target date retirement portfolios in February, which grew 4.1% from the prior month.
However, fixed-income products, including the money market, constituted $169 billion, down marginally from the January-end level.
A diversified business model, focus on enhancing investment capabilities, broadening distribution reach and investing in new product offerings are expected to aid TROW’s long-term growth.
However, the company’s overdependence on investment advisory fees is concerning. This is because market fluctuations and a sudden slowdown in overall business activities are likely to hurt its revenues. Additionally, a rising cost base could impede its bottom-line growth.
Over the past three months, shares of T. Rowe Price have gained 10.1% compared with the industry’s growth of 8.2%.
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TROW currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Competitive Landscape
Victory Capital Holdings, Inc. VCTR reported an AUM of $164.9 billion for February 2024. This reflected a 2.9% rise from $160.2 billion as of Jan 31, 2024.
By asset class, VCTR’s U.S. Mid Cap Equity AUM grew 4.4% from January to $31.3 billion. The U.S. Small Cap Equity AUM of $15.7 billion increased 3%. The Global/Non-U.S. Equity AUM rose 3.4% to $17.1 billion. The U.S. Large Cap Equity AUM improved 5.5% to $13.5 billion.
Franklin Resources, Inc. BEN reported its preliminary month-end AUM of $1.62 trillion as of Feb 29, 2024. This reflected an increase of 1.3% from the prior month.
The improvement was driven by positive markets and long-term net inflows, including the previously disclosed $5.5 billion in the retirement channel. However, fixed-income institutional client redemption of $2 billion affected BEN’s AUM balance.
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