T. Rowe Price shares fell 6.3% following the quarter as investors reacted to ongoing net outflows and a cautious outlook pointing to continued pressure on fundamental active equity, overshadowing modest positive inflows in select strategies.
- Assets under management ended at $1.9 trillion with $6.5 billion of net outflows in Q2, reflecting persistent pressure in fundamental active equity.
- Positive inflows in May and June driven by a large defined contribution win and sub-advisory gains, partially offsetting early-quarter outflows.
- Growth areas include integrated equity and fixed income strategies combining fundamental and quantitative research, totaling $200 billion AUM and adding $16 billion net inflows year-to-date.
- Active ETFs and SMAs are expanding, with 34 ETFs managing $30 billion and 43 SMAs managing $20 billion.
- Management signaled ongoing challenges in fundamental equity but highlighted progress in AI integration and new product launches without providing encouraging guidance for near-term recovery.
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