T. Rowe Price AUM Drops to $1.83 Trillion in October Following Outflows

T. Rowe Price Group, Inc. reported that its assets under management slipped 1.6% during October to finish at $1.83 trillion, down from $1.86 trillion at the end of September. The firm saw net client withdrawals of $10.8 billion over the month, which reduced its overall asset pool.

Declines were concentrated in equities, where assets fell 2.6% month over month to $873 billion. Multi-asset holdings dropped 1% to $674 billion, while alternative assets remained steady at $64 billion. Fixed-income and money market assets provided a bright spot, rising nearly 1% to $223 billion. Meanwhile, target-date retirement portfolios declined almost 1% to $609 billion, down from $614 billion as of Sept. 30, 2026.

The October drop follows the asset manager's third-quarter 2026 financial report, which featured net client outflows of US$28.3 billion despite strong top-line and bottom-line beats. Adjusted net revenue for the third quarter rose 5.3% year over year to $2.01 billion, topping S&P analysts' estimates of $1.98 billion. Adjusted diluted earnings per share reached $2.86, outpacing consensus projections of $2.65.

During the third quarter, client redemptions in equity strategies and target-date portfolios placed downward pressure on the firm's annualized effective fee rate, which dropped to 37.8 basis points excluding performance-based fees. Management noted that growth in newer vehicles helped soften these headwinds. The company posted third-quarter net inflows of $3.8 billion into exchange-traded funds and $3.4 billion into fixed-income strategies, bringing total ETF assets to $33.8 billion across 39 funds.

To counter traditional equity outflows and widen its product footprint, the firm is pursuing a series of strategic initiatives. These include the pending acquisition of F/m Investments, expanding its alternatives business, and developing partnerships with Goldman Sachs, Aspida, and Robinhood. However, management told investors that while fourth-quarter net outflows are expected to moderate, they will likely remain elevated.