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T. Rowe Price Group Inc TROW

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Stewardship

PREMIUM

Strong Flows and Market Gains Lift T. Rowe Price's AUM Back to Record Levels in 2Q

Greggory Warren, CFA Sector Strategist

Analyst Note

| Greggory Warren, CFA |

While there was little in wide-moat T. Rowe Price's second-quarter results that would alter our long-term view of the firm, we are likely to raise our $114 fair value estimate on improvements seen in the firm's near-term results that will positively impact our medium-term forecast. T. Rowe Price closed out the June quarter with a record $1.220 trillion in managed assets, up 20.9% sequentially and 8.4% on a year-over-year basis. Net inflows of $14.7 billion during the quarter were better than our expectations, as well as the positive $2.4 billion quarterly run rate we've seen for net flows at T. Rowe Price since the end of the 2008-09 financial crisis. Target-date funds saw an uncharacteristic $200 million in outflows during the second quarter, with most of the positive flows actually coming from the firm's subadvisory and separate account portfolios.

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Company Profile

Business Description

T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load U.S. and international stock, hybrid, bond, and money market funds. At the end of March 2020, the firm had $1.009 trillion in managed assets, composed of equity (55%), balanced (31%) and fixed-income (14%) offerings. Approximately two thirds of the company's managed assets are held in retirement-based accounts, which provides T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a U.S.-based asset manager, deriving just 7% of its AUM from overseas.

Contact
100 East Pratt Street
Baltimore, MD, 21202
T +1 410 345-2000
Sector Financial Services
Industry Asset Management
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type High Yield
Employees 7,365

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