May Outflows Drag T. Rowe Price AUM Down 0.5%
June 20, 2023
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T. Rowe Price ($NASDAQ:TROW) is a publicly traded asset management company with headquarters in Baltimore, Maryland. Recently, it has been reported that T. Rowe Price experienced a 0.5% decline in its assets under management in May due to outflows. This marks a significant shift for the company, after months of steady gains. The outflows primarily affected the company’s equity offerings, with U.S. equity funds and global equity funds experiencing the greatest reduction in assets under management.
On the other hand, assets under management for fixed income products increased slightly, albeit not enough to make up for the declines in equity funds. The dip in assets under management could have a wide-reaching impact on T. Rowe Price – from lower profits to reduced market power. The company will need to closely monitor its asset levels in the coming months and take steps to ensure that outflows do not continue to drag down its overall performance.
Analysis
At GoodWhale, we recently conducted an analysis of T. ROWE PRICE’s financials. Our star chart indicated that T. ROWE PRICE is classified as ‘cow’, which is a type of company that has a track record of paying out consistent and sustainable dividends. This type of company is likely to be of interest to investors looking for a reliable, stable source of income. The analysis revealed that T. ROWE PRICE is strong in terms of assets, dividends, and profitability, but weak in terms of growth. In addition, our health score for T. ROWE PRICE was 10/10, which suggests that the company is in a strong financial position and has the capacity to safely ride out any crisis without the risk of bankruptcy. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for TROW. More…
| Total Revenues | Net Income | Net Margin |
| 6.16k | 1.38k | 25.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for TROW. More…
| Operations | Investing | Financing |
| 1.77k | -102.8 | -1.58k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for TROW. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.16k | 2.08k | 40.29 |
Key Ratios Snapshot
Some of the financial key ratios for TROW are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.3% | -6.4% | 34.0% |
| FCF Margin | ROE | ROA |
| 24.7% | 14.7% | 10.8% |
Peers
The firm provides its services to individuals, institutions, retirement plans, trusts, and partnerships. It launches and manages equity, fixed income, balanced, and commodity mutual funds. The company was founded in 1937 and is headquartered in Baltimore, Maryland. As of December 31, 2017, T. Rowe Price Group Inc had $934.2 billion in assets under management (AUM). Federated Hermes Inc, Franklin Resources Inc, and ABC arbitrage SA are all competitors of T. Rowe Price Group Inc. Federated Hermes Inc is a global investment manager that offers a range of investment products, including equities, fixed income, and alternatives. As of December 31, 2017, Federated Hermes Inc had $590.6 billion in AUM. Franklin Resources Inc is a global investment management company that provides investment management and related services to institutional and individual investors. As of June 30, 2018, Franklin Resources Inc had $737.2 billion in AUM. ABC arbitrage SA is a French asset management company that specializes in convertible bonds and global equity markets arbitrage. As of December 31, 2017, ABC arbitrage SA had €5.4 billion in assets under management.
– Federated Hermes Inc ($NYSE:FHI)
Federated Hermes Inc. is a publicly traded company with a market capitalization of $2.86 billion as of 2022. The company has a return on equity of 22.41%. Federated Hermes Inc. is a financial services company that provides asset management and related services to individuals, families, institutions, and businesses. The company offers a broad range of investment strategies and products, including equity, fixed income, and alternative investments.
– Franklin Resources Inc ($NYSE:BEN)
Franklin Resources Inc is a publicly owned asset management holding company based in San Mateo, California. The company, through its subsidiaries, manages mutual funds and other investment portfolios. It also provides investment management and advisory services to institutional clients. As of December 31, 2020, Franklin Resources Inc had $744.2 billion in assets under management.
The company’s market cap is 11.69B as of 2022. The company has a return on equity of 12.45%. The company’s primary business is managing mutual funds and other investment portfolios. The company also provides investment management and advisory services to institutional clients.
– ABC arbitrage SA ($LTS:0OPJ)
ABC arbitrage SA is a French holding company that engages in the provision of financial services. The company operates through the following segments: Asset Management, Corporate Finance, and Market Making. The Asset Management segment offers investment products and services to individuals, professionals, and institutional clients. The Corporate Finance segment provides financing and advisory services to companies. The Market Making segment deals with market making activities in listed securities. ABC arbitrage SA was founded in 1991 and is headquartered in Paris, France.
Summary
T. Rowe Price is a global investment management firm based in Baltimore, Maryland. In May, its Asset Under Management (AUM) fell by 0.5%, due to outflows from its accounts. This was reflected in a drop in the company’s stock price on the same day. For investors, it is important to keep an eye on the company’s AUM trends, as it is a sign of the firm’s overall financial health.
It is also important to monitor the company’s fund performance, especially if investing for the long-term. Furthermore, investors should consider the fees associated with T. Rowe Price funds and make sure they are in line with their overall investment goals.
