TROW's January AUM Rises 1.2% Sequentially: Will the Trend Continue?

Core Insights - T. Rowe Price Group, Inc. (TROW) reported preliminary assets under management (AUM) of $1.80 trillion as of January 31, 2026, marking a 1.2% increase from the previous month despite net outflows of $5.2 billion, which were partially mitigated by favorable market performance [1][11] AUM Breakdown - As of the end of January, T. Rowe Price's equity products remained at $879 billion, unchanged from December 2025. Fixed income products increased slightly to $213 billion, while multi-asset products rose nearly 3% to $646 billion, indicating strong client demand. Alternative products also saw a 1.7% increase to $59 billion [2][11] - The company's target-date retirement portfolios reached $580 billion, reflecting a 3.4% increase from the prior month, showcasing the strength of its retirement-focused offerings [3] Growth Trends - Over the five-year period from 2020 to 2025, T. Rowe Price's AUM experienced a compound annual growth rate (CAGR) of 3.8%, driven by market appreciation and sustained demand for multi-asset and fixed-income solutions [4] - In terms of long-term performance, 46% of T. Rowe Price's U.S. mutual funds' AUM outperformed the Morningstar median, while 43% exceeded the passive peer median over the five years ending December 31, 2025. Additionally, investment advisory clients outside the United States accounted for 8.8% of total AUM, highlighting geographic diversification [5] Competitive Position - T. Rowe Price benefits from a well-diversified AUM mix across various asset classes, client segments, and geographies, which provides stability to its asset base. The company is well-positioned to sustain AUM growth in the future, supported by a strong brand and consistent investment track record [6] - Peers such as Franklin Resources, Inc. (BEN) and Invesco Ltd. (IVZ) have also shown steady AUM growth, with Franklin reporting a preliminary AUM of $1.71 trillion as of January 31, 2026, up 1.3% sequentially, and Invesco achieving a five-year CAGR of 10% [7][8][9]