T. Rowe Hit by Fund Outflows as Investors Flee to Indexing

T. Rowe Price Group Inc. clients withdrew a net $5.3 billion from its funds in the third quarter as the firm once again saw investors choose index-tracking products over its own offerings.

The Baltimore-based asset manager, which oversees about $1.3 trillion, has been a rare bright spot for active management in an industry where passive investing increasingly challenges stock pickers. But despite its success -- including a net $14.7 billion of inflows in the second quarter -- the firm is feeling the competitive pressure.