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T. Rowe Price's (TROW) August AUM Declines 2.2% on Weak Markets

T. Rowe Price Group, Inc. TROW announced its preliminary assets under management (AUM) for August 2023. The company’s month-end AUM of $1.40 trillion reflected a 2.2% decrease from the previous month, affected by unfavorable market conditions.

TROW experienced net outflows of $7.8 billion in August 2023.

At the end of the reported month, equity products and multi-asset products aggregated $730 billion and $457 billion, down 2.9% and 2.1%, respectively, on a sequential basis. T. Rowe Price registered $384 billion in target date retirement portfolios in August, which declined 2% from the prior month.

Nevertheless, alternative products of $46 billion were up 2.2% sequentially. Fixed-income products, including the money market, constituted $169 billion. This remains unchanged from the previous month.

A diversified business model, focus on enhancing investment capabilities, broadening distribution reach and improving client partnerships are expected to aid TROW’s long-term growth.

However, increased dependence on investment advisory fees is concerning, as market fluctuations and a sudden slowdown in overall business activities are likely to hurt its revenues. Additionally, rising expenses could impede bottom-line expansion.

Over the past six months, shares of T. Rowe Price have gained 2.3% compared with the industry’s upside of 16.6%.

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T. Rowe Price currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Competitive Landscape

Cohen & Steers, Inc. CNS reported a preliminary AUM of $80 billion as of Aug 31, 2023, which reflected a decline of 2.8% from the prior-month level. Market depreciation of $2.2 billion and distributions of $157 million were partly offset by net inflows of $12 million.

CNS recorded total institutional accounts of $33.5 billion at the end of August 2023, declining 2.7% from the July-end level. Of the total institutional accounts, advisory accounts were $19 billion while the rest were sub-advisory.

Virtus Investment Partners, Inc. VRTS recorded a sequential decrease in its preliminary AUM balance for August 2023 on the back of unfavorable market returns. The company reported month-end AUM of $169.4 billion, which reflected a fall of 1.5% from the Jul 31 level.

Excluded from the above-mentioned AUM balance, other fee-earning assets were $2.6 billion, to which Virtus Investment provided services.

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