What could drive asset managers in the second quarter?
Asset managers could witness a rise in base fees in the second quarter due to the equity market’s performance. In the first quarter, asset managers were impacted negatively by falling equity markets. Generally, the major global factors that impact equity markets include interest rate fluctuations and the geopolitical environment.
Higher equity markets lead to appreciation in asset managers’ holdings, which boosts their total AUM (assets under management). The higher AUM helps asset managers garner more base fees, which boosts their total revenues. T. Rowe Price’s (TROW) competitor (XLF), Invesco Limited (IVZ) released its AUM for May. Invesco witnessed a marginal rise from April. However, Franklin Resources (BEN) ended May with a total AUM of $732.8 billion.
T. Rowe Price’s AUM
T. Rowe Price released its AUM for May on June 12. The company’s AUM was $1.04 trillion—compared to $1.02 trillion in April. However, T. Rowe Price ended the first quarter with a total AUM of $1.01 trillion. In comparison, State Street’s (STT) AUM was $2.72 trillion at the end of the first quarter.
Of T. Rowe Price’s total AUM in May, $625 billion was in US mutual funds. Of the AUM in May, $496 billion was in equity and blended assets, while $129 billion was in fixed income and the money market. However, T. Rowe Price’s AUM in US mutual funds in May rose compared to April.