T. Rowe Price Reports 1% Sequential Growth in April AUM

T. Rowe Price Group, Inc. TROWannounced preliminary assets under management (AUM) of $1.02 trillion for April 2018. Results reflect nearly 1% rise from $1.01 trillion recorded on Mar 31, 2018.

Client transfers from mutual funds to other portfolios of $2.5 billion were recorded in April 2018.

Month-end total sponsored U.

S. mutual funds came in at $614 billion, slightly up from the prior month. Of the total sponsored U.S. mutual funds, around 79% were from stock and blended assets while the remaining came from bond and money market.

Total other investment portfolios were $406 billion, reflecting an increase of 1.2% from the previous month. Overall, stock and blended assets accounted for $309 billion or 76% of other investment portfolios while bond, money market and stable value came in at $97 billion or 24%.

T. Rowe Price recorded $241 billion in target date retirement portfolios, which was slightly up from $240 billion recorded in the prior month.

Our Viewpoint

Although regulatory restrictions and sluggish economic recovery are likely to impair the company’s growth and escalate costs, T. Rowe Price’s diverse and efficient business model is anticipated to help it further improve AUM. Also, its organic growth remains impressive, as indicated by the continuous rise in revenues.

So, we believe, driven by these, shares of T. Rowe Price have gained 25.3% in the last six months, outperforming 1.6% rally of the industry.