T. Rowe Price's AUM falls 6.1% for quarter, plunges 23.7% for year

T. Rowe Price Group reported assets under management of $1.23 trillion as of Sept. 30, down 6.1% from June 30, and down 23.7% from a year earlier.

Net outflows totaled $24.6 billion in the third quarter, compared with net outflows of $14.7 billion in the second quarter, and net outflows of $6.4 billion in the year-earlier quarter. By asset class, equity and fixed income (including money markets) and alternatives had net outflows of $22.8 billion, $2.4 billion and $200 million, respectively, in the third quarter, while multiasset products saw net inflows of $800 million.

Net market depreciation and losses of $55.1 billion also reduced AUM in the third quarter.

Rob Sharps, president and CEO, attributed the third-quarter outflows primarily to a "handful of growth-oriented equity strategies, amplified in this quarter with redemptions from a few large institutional clients," in a news release.

Regarding the economic backdrop, Mr. Sharps said: "Global equity markets were lower in the third quarter, with overseas returns for U.S. investors further pressured by a steep decline in major currencies against the dollar."

Regarding costs at the firm, Mr. Sharps added: "Throughout this year, we have taken steps to slow our expense growth, including focusing on our highest priority initiatives, slowing hiring, and reducing planned third-party spend. We continue to evaluate market conditions and will consider other levers as needed to manage expense growth and support our ability to invest in strategic initiatives."