TROW's July AUM Slips on Outflows: Can Diversification Support Growth?

T. Rowe Price Group TROW has benefited from a steady expansion in its diversified asset base despite continued client outflows. Over the past five years (2020-2025), the company’s assets under management (AUM) recorded a compound annual growth rate (CAGR) of 6.5%. The growth trend continued in the first half of 2026, with AUM reaching a record $1.89 trillion as of June 30, 2026.

However, the company’s preliminary AUM declined to $1.87 trillion as of July 31, 2026, due to $8.2 billion in net outflows. Equity AUM fell 2.5% to $896 billion, while fixed-income AUM remained stable at $222 billion. Multi-asset AUM declined marginally to $687 billion, while alternatives remained at $62 billion.

Nevertheless, TROW’s diversified AUM mix across equities, fixed income, multi-asset products and alternatives provides support for AUM growth. While equity assets remain under pressure, the resilience of other asset classes helps offset weakness in traditional equity strategies and provides additional avenues for AUM growth.

The company’s retirement franchise remains another key strength, particularly its target-date funds. These portfolios totaled $622 billion as of June 30, 2026, representing nearly 33% of total AUM. T. Rowe Price is also expanding its ETF and alternatives offerings to capture growing demand for diversified investment solutions. These efforts could broaden its asset base and reduce reliance on active equity products.

T. Rowe Price continues to strengthen its alternatives and credit platform through Oak Hill Advisors. The company has expanded its private credit offerings and closed its first internally managed collateralized loan obligation in April 2026. Its partnership with Aspida also supports the expansion of public and private asset management solutions. These initiatives could help TROW attract new assets and further diversify its AUM mix.

However, continued equity outflows could weigh on near-term AUM growth if inflows in other asset classes fail to offset redemptions. Private credit concerns could also dampen investor appetite for alternative credit strategies amid concerns over liquidity, valuations, leverage and credit quality. Still, T. Rowe Price’s diversified asset base, strong retirement franchise and expanding alternatives platform could support long-term AUM growth.

AUM Performance of T. Rowe Price’s Peers

Franklin Resources, Inc. BEN has witnessed steady AUM growth, supported by strong inflows and expansion into alternatives and private markets. BEN's AUM recorded a 3.1% CAGR during 2021-2025, with the growth trend continuing in first nine months of fiscal 2026. AUM reached a record $1.79 trillion as of June 30, 2026, up 11.2% year over year.

The upward trend continued in July, with preliminary AUM reaching $1.80 trillion as of July 31, 2026. The increase was driven by $6 billion in long-term net inflows and favorable market conditions.

Lazard, Inc. LAZ also recorded a 2.8% CAGR in AUM during 2016-2025. Growth continued in the first half of 2026, supported by positive net flows. The uptrend continued in July, with preliminary AUM reaching $286.9 billion, up from $284.6 billion in June, driven by market appreciation and net inflows.

LAZ also expanded its private-market capabilities through strategic acquisitions, with its Elaia Partners stake adding $1 billion to AUM in the second quarter of 2026.

TROW’s Price Performance & Zacks Rank

Over the past six months, shares of T. Rowe Price have gained 18.8% compared with the industry’s rise of 6.2%.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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