Can T. Rowe Price Continue to Outperform?
The stock market is coming off a strong year in 2019, which was great for asset management companies that invest in securities in their mutual funds and portfolios. One of those firms, T. Rowe Price (NASDAQ: TROW), had a particularly good year, up approximately 32% in 2019 and 37% over the past 12 months. The stock outperformed most of its competitors as stocks in the S&P 500 Index overall had an average return of 28% over the trailing 12 months.
The stock has popped early this year, up about 6% already year-to-date. What has driven its success, and can it sustain its edge?
The Baltimore-based money manager has $1.126 trillion in assets under management (AUM) as of its last earnings report. Roughly $643 billion of that is in mutual funds, with $146 billion in fixed-income assets and $336 billion in multi-asset funds, which include target-date retirement products. AUM climbed about 4% year over year in the third quarter last year. The asset growth came mostly from the multi-asset retirement funds, which saw modest inflows and an asset increase of $3.7 billion in the quarter.
Source Fool.com
