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T. Rowe Price Group, Inc. is a financial services holding company that offers global investment management services through its subsidiaries to a wide array of clients, including individuals, advisors, institutions, and retirement plan sponsors . The company primarily generates revenue and net income from investment advisory services across various investment solutions, such as equity, fixed income, multi-asset, and alternative capabilities . These services are delivered through multiple vehicles, including U.S. mutual funds, subadvised funds, separately managed accounts, collective investment trusts, and other products like open-ended investment products outside the U.S., variable annuity life insurance plans, affiliated private investment funds, and collateralized loan obligations . T. Rowe Price also provides related administrative services, including distribution, mutual fund transfer agent, accounting, shareholder services, participant recordkeeping, and transfer agent services for defined contribution retirement plans, as well as brokerage and trust services . A significant portion of the company's assets under management is retirement-related, highlighting the importance of this segment to their business .
- Investment Advisory Services - Offers investment management across equity, fixed income, multi-asset, and alternative capabilities, primarily through U.S. mutual funds, subadvised funds, separately managed accounts, and collective investment trusts.
- Retirement Services - Focuses on managing retirement-related assets, which constitute over two-thirds of the company's assets under management, underscoring its critical role in the business.
- Administrative Services - Provides distribution, mutual fund transfer agent, accounting, shareholder services, participant recordkeeping, and transfer agent services for defined contribution retirement plans.
- Brokerage and Trust Services - Delivers brokerage and trust services to support the company's investment management offerings.
- International Investment Products - Includes open-ended investment products outside the U.S., variable annuity life insurance plans, affiliated private investment funds, and collateralized loan obligations.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Glenn R. August ExecutiveBoard | CEO of Oak Hill Advisors (OHA) | None | CEO of OHA since 2021. Became a Director and Vice President at TROW in 2021. Co-founded OHA's predecessor firm in 1987. | |
Robert W. Sharps ExecutiveBoard | CEO and President | Board member of the Baltimore Curriculum Project | Joined TROW in 1997 as an analyst. Held roles such as CIO and Head of Investments before becoming CEO in 2022. Earned a CFA designation and an MBA from Wharton. | |
Arif Husain Executive | Head of Global Fixed Income and CIO | None | Joined TROW in 2013. Previously Head of International Fixed Income. Became Head of Global Fixed Income in 2024. | |
David Oestreicher Executive | General Counsel and Corporate Secretary | None | Joined TROW in 2001. Became General Counsel in 2020 and Corporate Secretary in 2012. | |
Dorothy C. Sawyer Executive | Head of Global Distribution | None | Joined TROW in 2012. Held roles such as Head of U.S. Intermediaries before becoming Head of Global Distribution in 2024. | |
Eric L. Veiel Executive | Head of Global Investments and CIO | None | Joined TROW in 2006. Held roles such as Head of Global Equity before becoming Head of Global Investments in 2024. | |
Jennifer B. Dardis Executive | CFO and Treasurer | None | Joined TROW in 2010. Previously Head of Corporate Strategy and Finance. Became CFO in 2021. | |
Jessica M. Hiebler Executive | Principal Accounting Officer and Controller | None | Joined TROW in 2009. Became Principal Accounting Officer in 2010 and Controller in 2020. | |
Josh Nelson Executive | Head of Global Equity | None | Joined TROW in 2007. Held roles such as Head of U.S. Equity before becoming Head of Global Equity in 2025. | |
Kimberly H. Johnson Executive | Chief Operating Officer (COO) | None | Joined TROW in 2022. Previously COO and CRO at Fannie Mae. Expertise in operations and risk management. | |
Sebastien Page Executive | Head of Global Multi-Asset and CIO | None | Joined TROW in 2015. Became Head of Global Multi-Asset in 2015 and CIO in 2022. | |
Stephon A. Jackson Executive | Head of T. Rowe Price Investment Mgmt. | None | Joined TROW in 2007. Held roles such as Associate Head of U.S. Equity before becoming Head of Investment Management in 2020. | |
Cynthia F. Smith Board | Independent Director | Versant Health, MetLife Legal Plans | Independent director since 2023. Senior VP at MetLife. Expertise in financial management and client experience. | |
Dina Dublon Board | Independent Director | PepsiCo, Motive Capital Corp. II, Ernst & Young USA, Jacob's Pillow Dance Foundation | Independent director since 2019. Former CFO of JPMorgan Chase. Expertise in corporate governance and finance. | |
Eileen P. Rominger Board | Independent Director | Jacob's Pillow Dance Foundation | Independent director since 2021. Former Global CIO at Goldman Sachs Asset Management and Director of Investment Management at the SEC. | |
Mark S. Bartlett Board | Independent Director | WillScot Mobile Mini Holdings, FTI Consulting, Zurn Elkay Water Solutions | Independent director since 2013. Former managing partner at Ernst & Young. Expertise in financial services and accounting. | |
Robert F. MacLellan Board | Independent Director | Northleaf Capital Partners, Magna International | Independent director since 2010. Former CIO of TD Bank Financial Group. Expertise in investment management. | |
Robert J. Stevens Board | Independent Director | Marine Corps Scholarship Foundation, Council on Foreign Relations | Independent director since 2019. Former CEO of Lockheed Martin. Expertise in strategic leadership and international operations. | |
Sandra S. Wijnberg Board | Independent Director | ADP, Cognizant Technology Solutions, Hippo Holdings | Independent director since 2016. Former CFO of Marsh & McLennan. Expertise in corporate governance and finance. | |
William P. Donnelly Board | Independent Director | Ingersoll Rand, Quanterix Corporation | Independent director since 2023. Former CFO of Mettler-Toledo. Expertise in corporate finance and operations. |
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With the anticipated increase in net outflows during the fourth quarter due to both seasonal trends and a large sub-advised variable annuity termination, how does T. Rowe Price plan to mitigate the impact on overall net flows and what strategies are in place to prevent such significant terminations in the future?
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Given the softness in your investment performance this quarter, particularly in the one-year metrics where aggregate statistics are not where you want them, what specific actions are you taking to address underperformance in key strategies, and how confident are you in your approach to improve performance without drastic measures?
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As you expand your ETF franchise and acknowledge some cannibalization of existing mutual fund assets, can you elaborate on how you're balancing this risk and whether the cost of distribution for ETFs differs in a way that could impact your margins compared to traditional funds?
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With the launch of Managed Lifetime Income and Personalized Retirement Manager, both of which may introduce additional costs for plan participants, how do you intend to overcome the fee sensitivity of plan sponsors and demonstrate the value of these products despite the added expenses associated with insurance guarantees and customized managed accounts?
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Considering the regulatory uncertainties and infrastructural challenges surrounding the inclusion of private market allocations in target date funds and retirement plans, what concrete steps are you taking to position T. Rowe Price ahead of competitors once these hurdles are cleared, and how do you plan to leverage your existing capabilities in private markets through OHA to capitalize on this potential opportunity?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Retiree, Inc. | 2023 | T. Rowe Price completed the acquisition of Retiree, Inc. on April 20, 2023, adding fintech retirement income planning software that enhances its capabilities across retail direct, defined contribution, and wealth management channels; the deal’s specific financial details were not disclosed because they were not considered material. |
Oak Hill Advisors, L.P. | 2021 | T. Rowe Price acquired 100% of Oak Hill Advisors, L.P. for up to $4.2 billion (with $3.3 billion paid at closing in a mix of approximately 74% cash and 26% T. Rowe Price common stock, plus up to $900 million contingent earnout) to expand its alternative credit and private markets platform while allowing Oak Hill to operate as a standalone business with its leadership remaining in place. |
Recent press releases and 8-K filings for TROW.
- Q1 2025 Earnings: GAAP net revenue of $1,763.9M, operating income of $596.3M, with non‐GAAP adjusted EPS of $2.23 and diluted EPS of $2.15 .
- Asset Management & Client Flows: Firmwide AUM ranged from $1.57T to $1.61T with quarter-end AUM at $1.57T, amid net client outflows of $8.6B and notable equity outflows .
- Investment Advisory Revenue: Achieved $1.6B with a 4% year-over-year increase, despite a decline in the effective fee rate due to a shift toward lower-cost vehicles .
- Capital Allocation: Strong balance sheet with $3.3B in cash supports opportunistic share buybacks and a sustained quarterly dividend of $1.27, while the company returned $506M to shareholders via dividends and repurchases .
- Global Expansion: Expanded its global retirement offerings through strategic partnerships in Asia, Canada, and Europe, leveraging its target date and retirement income expertise .
- $1.57 trillion in assets under management as of March 31, 2025, with equity, fixed income, multi-asset, and alternatives breakdown provided.
- Preliminary net outflows of $1.8 billion for March 2025 and $8.6 billion for Q1 2025, including $0.7 billion from manager-driven distributions.
- The company announced its Q1 2025 earnings release on May 2, 2025, along with an earnings call scheduled from 8:00 to 8:45 AM ET.
- Assets Under Management: T. Rowe Price reported preliminary month-end AUM of $1.63 trillion as of February 28, 2025.
- Net Outflows: The firm experienced preliminary net outflows of $4.7 billion in February 2025.
- Portfolio Breakdown: The report included a detailed breakdown by asset classes such as Equity ($827B), Fixed Income ($192B), Multi-Asset ($555B), and Target Date Retirement Portfolios ($494B), indicating strong client allocations.