TROW's August AUM Hits $1.90T: Can Diversification Sustain Growth?

T. Rowe Price Group, Inc. TROW reported preliminary assets under management (AUM) of $1.90 trillion as of Aug. 31, 2026, reflecting a 1.6% increase from the prior month despite $7.9 billion in net outflows.

The August increase builds on TROW’s steady long-term AUM growth. Over the past five years (ended 2025), the metric grew at a 6.5% compound annual growth rate (CAGR), rising from $1.78 trillion at year-end 2025 to $1.89 trillion as of June 30, 2026. The sustained growth highlights the strength of its diversified asset base, despite continued net outflows.

The benefit of this diversification was evident in August 2026, with gains across all major asset classes. The company's equity AUM increased 1.6% sequentially to $910 billion, while fixed-income AUM, including money market products, rose 1.4% to $225 billion. The multi-asset AUM climbed 1.7% to $699 billion, and alternative assets increased 1.6% to $63 billion.

While equity outflows remain a headwind, TROW is seeing improving demand across other asset classes. Fixed income, multi-asset and alternatives each recorded positive net flows in the second quarter, partly offsetting continued equity redemptions. Management expects sustained fixed-income net flows and continued momentum in alternatives, which could further improve the company’s overall flow mix.

TROW’s retirement franchise is also supporting its asset base, particularly through its target-date funds. These portfolios totaled $622 billion as of June 30, 2026, representing nearly 33% of total AUM. In August, target-date retirement portfolios reached $631 billion, up 1.8% from the prior month. Meanwhile, its active exchange-traded fund (ETF) business is gaining traction, generating $4.4 billion in net inflows during the second quarter and surpassing $30 billion in AUM. Growth in these areas is broadening TROW’s asset base beyond traditional active equity products.

The company is also expanding its alternatives capabilities to capture growing demand for private-market investments. TROW launched the T. Rowe Price Goldman Sachs Private Markets Fund in July 2026, while Oak Hill Advisors continues to strengthen its alternatives and credit platform. The expansion complements positive alternatives flows and provides another avenue to attract assets as the company works to offset equity outflows.

Although continued equity redemptions and private credit concerns may pressure near-term growth, TROW’s diversified asset base, improving flows across several asset classes and expansion into retirement, ETFs and alternatives provide multiple avenues to support AUM growth.

AUM Performance of T. Rowe Price’s Peers

Lazard, Inc. LAZ has witnessed steady AUM growth, with a 2.8% CAGR during 2016-2025. The growth momentum strengthened in the first half of 2026, with AUM rising 15% year over year to $285 billion as of June 30, 2026, supported by market appreciation and $7.4 billion in net inflows.

The momentum continued in August, with preliminary AUM rising 1.2% sequentially to $290.3 billion despite $1.8 billion in net outflows. Expansion in quantitative strategies, active ETFs and private markets, including the increased stake in Elaia Partners, should further support LAZ’s AUM growth.

Franklin Templeton, Inc. BEN has witnessed steady AUM growth, with a 3.1% CAGR during fiscal 2021-2025. The growth momentum strengthened in 2026, with AUM reaching a record $1.79 trillion as of June 30, 2026, supported by improving long-term net flows and favorable market conditions.

The positive trend continued for BEN, with $14 billion in long-term net inflows during August, lifting preliminary AUM 1.9% to a record $1.83 trillion. Expansion in alternatives, private markets and digital assets should further support AUM growth.

TROW’s Price Performance & Zacks Rank

Over the past six months, shares of T. Rowe Price have gained 21.6% compared with the industry’s rise of 14.8%.

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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