T. Rowe Price's AUM Climbs 6.9% in 1H 2025: What's Driving Growth?

Core Insights - T. Rowe Price Group (TROW) achieved a 6.9% year-over-year growth in assets under management (AUM), reaching $1.68 trillion in the first half of 2025, driven by favorable market conditions and strength in multi-asset and fixed income [1][8] - The company has shown a compound annual growth rate (CAGR) of 2.3% in AUM over the past four years (2020–2024) [1] - T. Rowe Price's U.S. mutual funds have outperformed the Morningstar median in 50% of cases and 52% against passive peers over the five years ending June 30, 2025 [4] AUM Performance - Target-date funds represent a significant portion of T. Rowe Price's AUM, totaling $520 billion, which is nearly 66% of the total AUM as of June 30, 2025 [5][8] - The company is expanding its growth engines through ETFs and an alternatives platform aimed at institutional investors, which helps mitigate pressures from outflows in traditional active equity funds [5][6] Competitive Landscape - T. Rowe Price's peers, Franklin Resources (BEN) and Lazard Ltd. (LAZ), are also focusing on AUM expansion, with Franklin reporting a five-year AUM CAGR of 3.1% and Lazard an eight-year CAGR of 1.7% through 2024 [7] - In the first half of fiscal 2025, Franklin's total AUM decreased, while Lazard's AUM improved [7] Financial Performance - T. Rowe Price's shares have increased by 10.7% over the past three months, compared to the industry's growth of 11.9% [10]