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 **[0001113169-24-000007_trow-20231231.htm:3]**. 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 **[0001113169-24-000019_trow-20240630.htm:6]** **[0001113169-24-000007_trow-20231231.htm:85]**. 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 **[0001113169-24-000019_trow-20240630.htm:6]** **[0001113169-24-000007_trow-20231231.htm:85]**. 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 **[0001113169-24-000019_trow-20240630.htm:6]** **[0001113169-24-000007_trow-20231231.htm:85]**. A significant portion of the company's assets under management is retirement-related, highlighting the importance of this segment to their business **[TROW_3381126_4]**.

1. **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.
2. **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.
3. **Administrative Services** - Provides distribution, mutual fund transfer agent, accounting, shareholder services, participant recordkeeping, and transfer agent services for defined contribution retirement plans.
4. **Brokerage and Trust Services** - Delivers brokerage and trust services to support the company's investment management offerings.
5. **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.

0516570473e32b576a6c407d9f1147ba3471701ed7792fec97b05f421130e2c1

**Funds AUM Outperforming Morningstar Median (1 Year) (%)**

**Funds AUM Outperforming Morningstar Median (3 Years) (%)**

**Funds AUM Outperforming Morningstar Median (5 Years) (%)**

**Composites AUM Outperforming Benchmarks (1 Year) (%)**

**Composites AUM Outperforming Benchmarks (3 Years) (%)**

**Composites AUM Outperforming Benchmarks (5 Years) (%)**

**Composites AUM Outperforming Benchmarks (10 Years) (%)**

**U.S. Funds Outperforming Morningstar Median (%)**

**U.S. Funds Outperforming Passive Peer Median (%)**

**Composites Outperforming Benchmarks (%)**

**U.S. Funds AUM Outperforming Morningstar Median (%)**

**U.S. Funds AUM Outperforming Passive Peer Median (%)**

6751ecee3979d9cd8ccf0ff49ed87912477c7dc631f6bdcef0d666935d90847c

| Metric (Unit) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Funds AUM Outperforming Morningstar Median (1 Year) (%)** | 39  **[0001113169-23-000002_earningsreleasetemplateq42.htm:11]** **[0001113169-23-000007_trow-20221231.htm:49]** **[0001104659-23-034918_tm233213d1_def14a.htm:51]**  | 35  **[0001113169-23-000014_trow-20230331.htm:23]**  | 68  **[0001113169-23-000024_trow-20230630.htm:25]**  | 71  **[0001113169-23-000044_trow-20230930.htm:26]**  | 74  **[0001104659-24-035429_tm244357-d9_def14a.htm:55]** **[0001113169-24-000007_trow-20231231.htm:48]**  | 73  **[0001113169-24-000013_trow-20240331.htm:21]**  | 78  **[0001113169-24-000019_trow-20240630.htm:24]**  | 57  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **Funds AUM Outperforming Morningstar Median (3 Years) (%)** | 64  **[0001113169-23-000002_earningsreleasetemplateq42.htm:11]** **[0001113169-23-000007_trow-20221231.htm:49]** **[0001104659-23-034918_tm233213d1_def14a.htm:51]**  | 63  **[0001113169-23-000014_trow-20230331.htm:23]**  | 61  **[0001113169-23-000024_trow-20230630.htm:25]**  | 60  **[0001113169-23-000044_trow-20230930.htm:26]**  | 55  **[0001113169-24-000007_trow-20231231.htm:48]**  | 49  **[0001113169-24-000013_trow-20240331.htm:21]**  | 53  **[0001113169-24-000019_trow-20240630.htm:24]**  | 44  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **Funds AUM Outperforming Morningstar Median (5 Years) (%)** | 69  **[0001113169-23-000002_earningsreleasetemplateq42.htm:11]** **[0001113169-23-000007_trow-20221231.htm:49]** **[0001104659-23-034918_tm233213d1_def14a.htm:51]**  | 64  **[0001113169-23-000014_trow-20230331.htm:23]**  | 69  **[0001113169-23-000024_trow-20230630.htm:25]**  | 79  **[0001113169-23-000044_trow-20230930.htm:26]**  | 57  **[0001113169-24-000007_trow-20231231.htm:48]**  | 63  **[0001113169-24-000013_trow-20240331.htm:21]**  | 63  **[0001113169-24-000019_trow-20240630.htm:24]**  | 61  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **Composites AUM Outperforming Benchmarks (1 Year) (%)** | 33  **[0001113169-23-000002_earningsreleasetemplateq42.htm:11]** **[0001113169-23-000007_trow-20221231.htm:49]** **[0001104659-23-034918_tm233213d1_def14a.htm:51]**  | 35  **[0001113169-23-000011_trowq123earningsreleases.htm:1]**  | 38  **[0001113169-23-000022_trowearningsreleasesuppl.htm:1]**  | 46  **[0001113169-23-000044_trow-20230930.htm:26]**  | 56  **[0001113169-24-000013_trow-20240331.htm:21]**  | 59  **[0001113169-24-000013_trow-20240331.htm:21]**  | 61  **[0001113169-24-000019_trow-20240630.htm:24]**  | 60  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **Composites AUM Outperforming Benchmarks (3 Years) (%)** | 42  **[0001113169-23-000002_earningsreleasetemplateq42.htm:11]** **[0001113169-23-000007_trow-20221231.htm:49]** **[0001104659-23-034918_tm233213d1_def14a.htm:51]**  | 44  **[0001113169-23-000011_trowq123earningsreleases.htm:1]**  | 41  **[0001113169-23-000022_trowearningsreleasesuppl.htm:1]**  | 37  **[0001113169-23-000044_trow-20230930.htm:26]**  | 33  **[0001113169-24-000013_trow-20240331.htm:21]**  | 33  **[0001113169-24-000013_trow-20240331.htm:21]**  | 36  **[0001113169-24-000019_trow-20240630.htm:24]**  | 27  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **Composites AUM Outperforming Benchmarks (5 Years) (%)** | 46  **[0001113169-23-000002_earningsreleasetemplateq42.htm:11]** **[0001113169-23-000007_trow-20221231.htm:49]** **[0001104659-23-034918_tm233213d1_def14a.htm:51]**  | 40  **[0001113169-23-000011_trowq123earningsreleases.htm:1]**  | 36  **[0001113169-23-000022_trowearningsreleasesuppl.htm:1]**  | 47  **[0001113169-23-000044_trow-20230930.htm:26]**  | 44  **[0001113169-24-000013_trow-20240331.htm:21]**  | 41  **[0001113169-24-000013_trow-20240331.htm:21]**  | 41  **[0001113169-24-000019_trow-20240630.htm:24]**  | 40  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **Composites AUM Outperforming Benchmarks (10 Years) (%)** | 57  **[0001113169-23-000002_earningsreleasetemplateq42.htm:11]** **[0001113169-23-000007_trow-20221231.htm:49]** **[0001104659-23-034918_tm233213d1_def14a.htm:51]**  | 56  **[0001113169-23-000011_trowq123earningsreleases.htm:1]**  | 64  **[0001113169-23-000022_trowearningsreleasesuppl.htm:1]**  | 54  **[0001113169-23-000044_trow-20230930.htm:26]**  | 51  **[0001113169-24-000013_trow-20240331.htm:21]**  | 60  **[0001113169-24-000013_trow-20240331.htm:21]**  | 60  **[0001113169-24-000019_trow-20240630.htm:24]**  | 55  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **U.S. Funds Outperforming Morningstar Median (%)** | 41  **[0001113169-23-000007_trow-20221231.htm:49]**  | 40  **[0001113169-23-000014_trow-20230331.htm:23]**  | 56  **[0001113169-23-000024_trow-20230630.htm:25]**  | 61  **[0001113169-23-000044_trow-20230930.htm:26]**  | 64  **[0001113169-24-000007_trow-20231231.htm:48]**  | 65  **[0001113169-24-000013_trow-20240331.htm:21]**  | 68  **[0001113169-24-000019_trow-20240630.htm:24]**  | 53  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **U.S. Funds Outperforming Passive Peer Median (%)** | 39  **[0001113169-23-000002_earningsreleasetemplateq42.htm:11]**  | 41  **[0001113169-23-000014_trow-20230331.htm:23]**  | 54  **[0001113169-23-000024_trow-20230630.htm:25]**  | 59  **[0001113169-23-000044_trow-20230930.htm:26]**  | 64  **[0001113169-24-000007_trow-20231231.htm:48]**  | 72  **[0001113169-24-000013_trow-20240331.htm:21]**  | 72  **[0001113169-24-000019_trow-20240630.htm:24]**  | 45  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **Composites Outperforming Benchmarks (%)** | 32  **[0001113169-23-000002_earningsreleasetemplateq42.htm:11]**  | 31  **[0001113169-23-000014_trow-20230331.htm:23]**  | 38  **[0001113169-23-000024_trow-20230630.htm:25]**  | 41  **[0001113169-23-000044_trow-20230930.htm:26]**  | 52  **[0001113169-24-000007_trow-20231231.htm:48]**  | 57  **[0001113169-24-000013_trow-20240331.htm:21]**  | 61  **[0001113169-24-000019_trow-20240630.htm:24]**  | 51  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **U.S. Funds AUM Outperforming Morningstar Median (%)** | 39  **[0001113169-23-000007_trow-20221231.htm:49]**  | 35  **[0001113169-23-000014_trow-20230331.htm:23]**  | 68  **[0001113169-23-000024_trow-20230630.htm:25]**  | 71  **[0001113169-23-000044_trow-20230930.htm:26]**  | 74  **[0001113169-24-000007_trow-20231231.htm:48]**  | 73  **[0001113169-24-000013_trow-20240331.htm:21]**  | 78  **[0001113169-24-000019_trow-20240630.htm:24]**  | 57  **[0001113169-24-000030_trow-20240930.htm:24]**  |
| **U.S. Funds AUM Outperforming Passive Peer Median (%)** | 38  **[0001113169-23-000002_earningsreleasetemplateq42.htm:11]**  | 34  **[0001113169-23-000014_trow-20230331.htm:23]**  | 70  **[0001113169-23-000024_trow-20230630.htm:25]**  | 73  **[0001113169-23-000044_trow-20230930.htm:26]**  | 75  **[0001113169-24-000007_trow-20231231.htm:48]**  | 74  **[0001113169-24-000013_trow-20240331.htm:21]**  | 78  **[0001113169-24-000019_trow-20240630.htm:24]**  | 50  **[0001113169-24-000030_trow-20240930.htm:24]**  |

9dedb5aeb5785af5a4dcb7c4035230ba84bbcbf8ba30eb58d07f0a7a106af4e3

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

7d7ca6f2ac46497514c0dee46652538d27b6f9ea6e606528abee9008442d5bcb

| Metric [in Million USD] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Equity**           | N/A     | 833.9  **[0001113169-23-000011_earningsreleasetemplateq12.htm:2]**  | 862.3  **[0001113169-23-000022_earningsreleasetemplateq22.htm:2]**  | 885.0  **[0001113169-23-000042_earningsreleasetemplateq32.htm:2]**  | 864.3  **[0001113169-24-000002_earningsreleasetemplateq42.htm:2]**  | 949.6  **[0001113169-24-000011_earningsreleasetemplateq12.htm:2]**  | 948.9  **[0001113169-24-000018_earningsreleaseq22024.htm:2]**  | 978.5  **[0001113169-24-000028_earningsreleaseq32024.htm:2]**  |
| **Fixed Income**     | N/A     | 102.4  **[0001113169-23-000011_earningsreleasetemplateq12.htm:2]**  | 100.0  **[0001113169-23-000022_earningsreleasetemplateq22.htm:2]**  | 100.9  **[0001113169-23-000042_earningsreleasetemplateq32.htm:2]**  | 98.2  **[0001113169-24-000002_earningsreleasetemplateq42.htm:2]**  | 100.6  **[0001113169-24-000011_earningsreleasetemplateq12.htm:2]**  | 100.2  **[0001113169-24-000018_earningsreleaseq22024.htm:2]**  | 104.1  **[0001113169-24-000028_earningsreleaseq32024.htm:2]**  |
| **Multi-Asset**      | N/A     | 386.0  **[0001113169-23-000011_earningsreleasetemplateq12.htm:2]**  | 391.3  **[0001113169-23-000022_earningsreleasetemplateq22.htm:2]**  | 405.5  **[0001113169-23-000042_earningsreleasetemplateq32.htm:2]**  | 400.6  **[0001113169-24-000002_earningsreleasetemplateq42.htm:2]**  | 429.7  **[0001113169-24-000011_earningsreleasetemplateq12.htm:2]**  | 444.8  **[0001113169-24-000018_earningsreleaseq22024.htm:2]**  | 465.8  **[0001113169-24-000028_earningsreleaseq32024.htm:2]**  |
| **Alternatives**     | N/A     | 69.5  **[0001113169-23-000011_earningsreleasetemplateq12.htm:2]**   | 77.2  **[0001113169-23-000022_earningsreleasetemplateq22.htm:2]**   | 72.5  **[0001113169-23-000042_earningsreleasetemplateq32.htm:2]**   | 98.1  **[0001113169-24-000002_earningsreleasetemplateq42.htm:2]**   | 74.1  **[0001113169-24-000011_earningsreleasetemplateq12.htm:2]**   | 91.7  **[0001113169-24-000018_earningsreleaseq22024.htm:2]**   | 84.5  **[0001113169-24-000028_earningsreleaseq32024.htm:2]**   |
| **Total Investment Advisory Fees** | 1,368.3  **[0001113169-23-000002_earningsreleasetemplateq42.htm:1]**  | 1,391.8  **[0001113169-23-000011_earningsreleasetemplateq12.htm:2]**  | 1,430.8  **[0001113169-23-000022_earningsreleasetemplateq22.htm:2]**  | 1,463.9  **[0001113169-23-000042_earningsreleasetemplateq32.htm:2]**  | 1,461.2  **[0001113169-24-000002_earningsreleasetemplateq42.htm:2]**  | 1,554.0  **[0001113169-24-000011_earningsreleasetemplateq12.htm:2]**  | 1,585.6  **[0001113169-24-000018_earningsreleaseq22024.htm:2]**  | 1,632.9  **[0001113169-24-000028_earningsreleaseq32024.htm:2]**  |
| **Capital Allocation-Based Income** | 26.5  **[0001113169-23-000002_earningsreleasetemplateq42.htm:1]**  | 16.9  **[0001113169-23-000011_earningsreleasetemplateq12.htm:2]**  | 38.7  **[0001113169-23-000022_earningsreleasetemplateq22.htm:2]**  | 66.1  **[0001113169-23-000042_earningsreleasetemplateq32.htm:0]**  | 40.2  **[0001113169-24-000002_earningsreleasetemplateq42.htm:2]**  | 47.1  **[0001113169-24-000011_earningsreleasetemplateq12.htm:2]**  | 0.1  **[0001113169-24-000019_trow-20240630.htm:29]**  | 4.6  **[0001113169-24-000030_trow-20240930.htm:27]**  |
| **Administrative, Distribution, and Servicing Fees** | 129.4  **[0001113169-23-000002_earningsreleasetemplateq42.htm:1]**  | 128.9  **[0001113169-23-000011_earningsreleasetemplateq12.htm:2]**  | 140.7  **[0001113169-23-000022_earningsreleasetemplateq22.htm:2]**  | 140.7  **[0001113169-23-000042_earningsreleasetemplateq32.htm:2]**  | 140.6  **[0001113169-24-000002_earningsreleasetemplateq42.htm:2]**  | 149.1  **[0001113169-24-000011_earningsreleasetemplateq12.htm:2]**  | 147.6  **[0001113169-24-000019_trow-20240630.htm:29]**  | 148.1  **[0001113169-24-000030_trow-20240930.htm:27]**  |
| **Total Net Revenues** | 1,524.2  **[0001113169-23-000002_earningsreleasetemplateq42.htm:1]**  | 1,537.6  **[0001113169-23-000011_earningsreleasetemplateq12.htm:2]**  | 1,610.2  **[0001113169-23-000022_earningsreleasetemplateq22.htm:2]**  | 1,670.7  **[0001113169-23-000042_earningsreleasetemplateq32.htm:0]**  | 1,642.0  **[0001113169-24-000002_earningsreleasetemplateq42.htm:2]**  | 1,750.2  **[0001113169-24-000011_earningsreleasetemplateq12.htm:2]**  | 1,733.3  **[0001113169-24-000019_trow-20240630.htm:29]**  | 1,785.6  **[0001113169-24-000030_trow-20240930.htm:27]**  |

546db8c6506ad0718f97e059b25948780b4c24d13da85c007d3291fd3c456b24

1. 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?

2. 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?

3. 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?

4. 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?

5. 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?

6a5520dfeb20faf8ebee1557800033e79be6d0392f3bb0fcab5864b512ba0ecf

### Q3 2024 Earnings Call
   - **Issued Period**: Q3 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Adjusted Operating Expenses**: Expected to be **6% to 8%** over the comparable full year 2023 amount of **$4.19 billion**  **[TROW_3405434_3]** .
     - **Expense Growth for 2025**: Goal to align expense growth with forecasted revenue growth, with the opening expense guide for 2025 expected to be higher than the previous year's **3% to 5%** range  **[TROW_3405434_14]** .
     - **Non-GAAP Effective Tax Rate**: Anticipated to be in the range of **23.5% to 25.5%**  **[TROW_3394675_3]** .

### Q2 2024 Earnings Call
   - **Issued Period**: Q2 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Adjusted Operating Expenses**: Expected to increase by **6% to 8%** over the comparable full year 2023 amount of **$4.19 billion**  **[TROW_3394675_3]** .
     - **Non-GAAP Effective Tax Rate**: Anticipated to be in the range of **23.5% to 25.5%**  **[TROW_3394675_3]** .

### Q1 2024 Earnings Call
   - **Issued Period**: Q1 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Adjusted Operating Expenses**: Expected to be up **5% to 7%** over 2023's $4.19 billion  **[TROW_3381126_3]** .
     - **Net Outflows**: Anticipated, but with substantial improvement compared to the previous year  **[TROW_3381126_1]** .

### Q4 2023 Earnings Call
   - **Issued Period**: Q4 2023
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Adjusted Operating Expenses**: Expected to increase by **3% to 5%** over 2023's $4.19 billion  **[TROW_3372438_5]** .
     - **Non-GAAP Effective Tax Rate**: Anticipated to be in the range of **23% to 26%**  **[TROW_3372438_5]** .

9e08e0977e861019a879451fe329873dca1873878969797fb78c2ae9dc5c35f4

**Annual guidance for FY 2024:**
- **Adjusted Operating Expenses**: 6% to 8%  **[TROW_3405434_3]**  (no change from prior 6% to 8%  **[TROW_3394675_3]** )  
- **Non-GAAP Effective Tax Rate**: 23.5% to 25.5%  **[TROW_3394675_3]**  (no change from prior 23.5% to 25.5%  **[TROW_3394675_3]** )

**Annual guidance for 2025:**
- **Expense Growth for 2025**: Goal to align expense growth with forecasted revenue growth, with the opening expense guide for 2025 expected to be higher than the previous year's 3% to 5% range  **[TROW_3405434_14]**  (no prior guidance)

9f3c0fdf243799e1913f684ff39dd23c2da91a1b63cf7d8cd81d043735e0a022

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

7b681532572f6866ce97b918604a79ff0917c98af7ed68e301c0f15d2ea983e0

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | March 2020  **[0001113169-24-000030_trow-20240930.htm:51]**   |
| End Date/Duration        | N/A             |
| Total additional amount  | N/A             |
| Remaining authorization  | **4,000,489** shares  **[0001113169-24-000030_trow-20240930.htm:51]**  |
| Details                  | Offset dilution from equity-based compensation plans  **[0001113169-24-000007_trow-20231231.htm:41]** **[TROW_3372438_13]** **[0001113169-24-000013_trow-20240331.htm:35]**  |

3fde68315d24950a87d9b8b8c001abb1ac1ea791480627912f6ae66e86fb8689

| Name                  | Position                                                                 | Start Date | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Robert W. Sharps      | Chief Executive Officer, Director, and President                         | 2022       | Robert W. Sharps has been with T. Rowe Price since **1997**. He became President in **February 2021** and CEO in **January 2022**. He has been a director since **2021**  **[0001104659-24-035429_tm244357-d9_def14a.htm:12]** **[0001113169-24-000007_trow-20231231.htm:40]** **[0001104659-23-034918_tm233213d1_def14a.htm:11]** .                                                            |
| Jennifer B. Dardis    | Chief Financial Officer and Treasurer                                    | 2021       | Jennifer B. Dardis has been CFO and Treasurer since **2021**. She was previously Head of Finance and Head of Corporate Strategy  **[0001113169-24-000007_trow-20231231.htm:40]** .                                                                                                           |
| Glenn R. August       | Chief Executive Officer of OHA, Director, and Vice President             | 2021       | Glenn R. August has been a director and vice president since **2021**. He is the founder and CEO of Oak Hill Advisors, acquired by T. Rowe Price  **[0001104659-24-035429_tm244357-d9_def14a.htm:7]** **[0001104659-23-034918_tm233213d1_def14a.htm:7]** .                                                                                       |
| Arif Husain           | Head of Global Fixed Income and Chief Investment Officer                 | 2023       | Arif Husain has been Head of Global Fixed Income since **2024** and CIO since **2023**. He was previously Head of International Fixed Income  **[0001113169-24-000007_trow-20231231.htm:40]** .                                                                                               |
| Stephon A. Jackson    | Head of T. Rowe Price Investment Management                              | 2020       | Stephon A. Jackson has been Head of T. Rowe Price Investment Management since **2020**. He was previously Associate Head of U.S. Equity  **[0001113169-24-000007_trow-20231231.htm:40]** .                                                                                                   |
| Kimberly H. Johnson   | Chief Operating Officer                                                  | 2022       | Kimberly H. Johnson has been COO since **2022**. She was previously EVP and COO at Fannie Mae  **[0001113169-24-000007_trow-20231231.htm:40]** .                                                                                                                                              |
| Josh Nelson           | Head of U.S. Equity                                                      | 2022       | Josh Nelson has been Head of U.S. Equity since **2022**. He was previously Associate Head of U.S. Equity  **[0001113169-24-000007_trow-20231231.htm:40]** **[0001113169-23-000007_trow-20221231.htm:41]** .                                                                                                                               |
| David Oestreicher     | General Counsel and Corporate Secretary                                  | 2020       | David Oestreicher has been General Counsel since **2020** and Corporate Secretary since **2012**  **[0001113169-24-000007_trow-20231231.htm:40]** **[0001113169-23-000007_trow-20221231.htm:41]** .                                                                                                                                        |
| Sebastien Page        | Head of Global Multi-Asset and Chief Investment Officer                  | 2022       | Sebastien Page has been Head of Global Multi-Asset since **2015** and CIO since **2022**  **[0001113169-24-000007_trow-20231231.htm:40]** **[0001113169-23-000007_trow-20221231.htm:41]** .                                                                                                                                                |
| Dorothy C. Sawyer     | Head of Global Distribution                                              | 2024       | Dorothy C. Sawyer has been Head of Global Distribution since **2024**. She was previously Head of U.S. Intermediaries and Retirement Plan Services  **[0001113169-24-000007_trow-20231231.htm:40]** .                                                                                         |
| Justin Thomson        | Head of International Equity and Chief Investment Officer                | 2021       | Justin Thomson has been Head of International Equity since **2021** and CIO since **2017**. He will lead the T. Rowe Price Investment Institute starting **January 1, 2025**  **[0001113169-24-000007_trow-20231231.htm:40]** **[0001113169-24-000022_investmentinstitute-pres.htm:1]** **[0001113169-23-000007_trow-20221231.htm:41]** **[0001113169-24-000022_trow-20241001.htm:1]** .                                                      |
| Eric L. Veiel         | Head of Global Investments and Chief Investment Officer                  | 2024       | Eric L. Veiel has been Head of Global Investments and CIO since **2024**. He was previously Head of Global Equity  **[0001113169-24-000007_trow-20231231.htm:40]** .                                                                                                                         |
| Jessica M. Hiebler    | Principal Accounting Officer and Controller                              | 2020       | Jessica M. Hiebler has been Principal Accounting Officer since **2010** and Controller since **2020**  **[0001113169-24-000007_trow-20231231.htm:40]** **[0001113169-23-000007_trow-20221231.htm:41]** .                                                                                                                                   |

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| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 2001  **[0001113169-24-000007_trow-20231231.htm:112]**    | Present  | Current auditor   |

a4df553195ed7a89bf71ccf7d6dce212f0f5a5893d82d97ea80cb06b533dd597

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,785.6 million (+7% YoY)  **[0001113169-23-000044_trow-20230930.htm:32]** **[0001113169-24-000030_trow-20240930.htm:29]**   
- Investment Advisory Fees: $1,632.9 million (+12% YoY)  **[0001113169-23-000044_trow-20230930.htm:32]** **[0001113169-24-000030_trow-20240930.htm:29]**   
  • Equity: $978.5 million (+11% YoY)  **[0001113169-23-000044_trow-20230930.htm:32]** **[0001113169-24-000030_trow-20240930.htm:29]**   
  • **Multi-Asset: $465.8 million (+15% YoY)**  **[0001113169-23-000044_trow-20230930.htm:32]** **[0001113169-24-000030_trow-20240930.htm:29]**   
  • **Alternatives: $84.5 million (+17% YoY)**  **[0001113169-23-000044_trow-20230930.htm:32]** **[0001113169-24-000030_trow-20240930.htm:29]**   
- **Capital Allocation-Based Income: $4.6 million (-93% YoY)**  **[0001113169-23-000044_trow-20230930.htm:32]** **[0001113169-24-000030_trow-20240930.htm:29]**   
- Operating Income (EBIT): $613.6 million (+6% YoY)  **[0001113169-23-000044_trow-20230930.htm:2]** **[0001113169-24-000030_trow-20240930.htm:2]**   
- **Net Income: $603 million (+33% YoY)**  **[0001113169-23-000044_trow-20230930.htm:2]** **[0001113169-24-000030_trow-20240930.htm:2]**   
- Diluted EPS: $2.63 (+33% YoY)  **[0001113169-23-000044_trow-20230930.htm:2]** **[0001113169-24-000030_trow-20240930.htm:2]**   

94afed33140d586fa0e4f381feaf1bd60358617d514888e060cd65aa831a8c8a

6ede538777d9dfbf3002b4f32322a1e3cac7d37998e3d0a35e01d80cc7a4d3e7

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a10d3bf23dc837d3e54decda7a0483955a45a599d91e605a34c2df43b5549f57

- **Net outflows are expected to continue into 2025**, with the CEO stating, "*I think we'll demonstrate that we're on a path that will take us back to organic growth, whether we get there in 2025 or not... we'll make meaningful further progress but won't get there for the full year.*"  **[TROW_3405434_5]**
- **Investment performance metrics are soft and not where we want them**. The CEO acknowledged, "*I'm the first to acknowledge that the aggregate statistics as they stand today are soft and not where we want them... It wasn't a great quarter.*"  **[TROW_3405434_13]**
- **Cannibalization of existing mutual fund assets into ETFs**. The CEO noted, "*There has to be some element, particularly with the semi-transparent clone, of cannibalization... we can say with reasonable confidence that a substantial portion of what we're getting in the ETF business is new and incremental. But there clearly is some cannibalization.*"  **[TROW_3405434_9]**

c61b8d5a699e87f176c1b47221dfa1a398da9aace427883cd01ccc126454aa00

- **Strong momentum in retirement offerings with innovative products and partnerships:** T. Rowe Price has launched **Personalized Retirement Manager**, the industry's first managed account tailored for individuals, and **Managed Lifetime Income**, a new retirement solution offering stable monthly income for life  **[TROW_3405434_6]** **[TROW_3405434_1]** . These products, along with a **custom glide path win**, demonstrate T. Rowe Price's deepening leadership in the retirement market  **[TROW_3405434_6]** .
- **Significant progress towards positive net flows:** Excluding a specific variable annuity mandate loss, **2024 net outflows would have been less than half of 2023 levels**, reflecting substantive progress  **[TROW_3405434_5]** . T. Rowe Price expects **sizable further improvement in 2025**, with positive flows in all asset classes except active equities, strong growth in retirement date funds, and larger contributions from alternatives, ETFs, and SMAs  **[TROW_3405434_5]** .
- **Expansion of ETF franchise attracting new clients and driving incremental growth:** T. Rowe Price is expanding its **ETF business**, reaching new buyers including advisors exclusive to ETFs, and offering strategies not available in open-ended funds  **[TROW_3405434_9]** **[TROW_3405434_1]** . The ETF franchise includes **top quartile performance ETFs**, contributing to incremental growth beyond existing fund assets  **[TROW_3405434_9]** **[TROW_3405434_1]** .

9790b18bfae2cde6fb134c4054d0ec0e703efe5f6016ec150bbd6e0a57dbf05f

- **T. Rowe Price anticipates net outflows in 2024**, although they expect improvement from 2023.  **[TROW_3372438_7]**
- **Fixed income flows have turned negative in the quarter**, potentially indicating challenges in that asset class.  **[TROW_3372438_9]**
- **Share buybacks are expected to remain lower than historical levels** due to lower free cash flow after dividends, limiting the company's ability to repurchase shares.  **[TROW_3372438_13]**

1739e397939377a11b69e510a072d9edf655fa7e94437ed032684cd5fc706825

- **Growth in Oak Hill Advisors' fee-based AUM has been slower than anticipated**, with some redemptions and challenges in deployment; **expecting only high single-digit growth in fee-based AUM this year**, potentially impacting TROW's revenue from alternatives.  **[TROW_3381126_11]**
- **Ongoing fee compression of about 1% to 1.5% annually** as clients seek scale discounts, which may impact TROW's revenue growth.  **[TROW_3381126_14]**
- **April net flows are weaker** due to client rebalancing and **softer industry backdrop**, indicating that improvement in net outflows **may not be linear** and that flows are **hard to predict**.  **[TROW_3381126_8]**

acf3889936b89bf8563f51c618a4d816dab0e85935ef1e18f5a1f37dc41c65cd

1. **Improving Flows and Redemptions**  
**Q:** What's driving better sales and lower redemptions?  
**A:** CEO Robert Sharps noted that despite industry flows being soft in April, T. Rowe Price's outlook for flows hasn't changed since January. They expect outflows this year to be **substantially lower** than last year's.  **[TROW_3381126_8]**  Improved investment performance, especially in U.S. equity and large-cap growth, is leading to normalized redemption rates and early signs of gross sales recovery.  **[TROW_3381126_8]**  Retirement date fund flows remain strong at just shy of **$7 billion** in Q1.  **[TROW_3381126_8]** 

2. **Oak Hill Advisors (OHA) Growth Drivers**  
**Q:** How will OHA accelerate revenue growth?  
**A:** CEO Robert Sharps acknowledged that growth in OHA's fee-based AUM has been slower due to redemptions and deployment challenges.  **[TROW_3381126_11]**  However, he expects **mid-teens growth** in capital under management, with momentum in their dedicated senior private lending product.  **[TROW_3381126_11]**  The non-traded BDC, OCREDIT, has launched and reached nearly **$1.4 billion** in invested assets as of March 31.  **[TROW_3381126_11]** 

3. **Expense Guidance and AUM Impact**  
**Q:** Is expense guidance factoring the full Q1 AUM mark?  
**A:** CFO Jen Dardis said they used the **first quarter average** AUM to estimate expense growth.  **[TROW_3381126_9]**  Despite market decreases in April, they expect expenses to align with guidance as markets return to average levels.  **[TROW_3381126_9]** 

4. **Fee Rates and Performance Fees**  
**Q:** What's the outlook for fee rates and performance fees?  
**A:** CFO Jen Dardis stated that fee compression continues at about **1% to 1.5%** annually due to scale and strategic relationships.  **[TROW_3381126_14]**  Performance fees contributed positively this quarter from a few equity products, but such contributions are typically one-off.  **[TROW_3381126_14]**  CEO Robert Sharps feels good about their value proposition and fee competitiveness.  **[TROW_3381126_14]** 

5. **DCIO vs. Full-Service Recordkeeping Economics**  
**Q:** How do DCIO and full-service segments compare economically?  
**A:** Dorothy Sawyer explained that **75%** of U.S. defined contribution AUM is in the DCIO channel, which they value.  **[TROW_3381126_10]**  The retirement services business benefits from **60%** of assets being proprietary products and the ability to capture IRA rollovers.  **[TROW_3381126_10]**  In-house recordkeeping allows quicker rollout of solutions and insight into global DC opportunities.  **[TROW_3381126_10]** 

6. **Alternative Investments in Retirement Plans**  
**Q:** Will alternatives enter target date funds soon?  
**A:** Dorothy Sawyer stated that while they've researched adding alternatives to 401(k) plans, complexities like daily NAV and regulations pose challenges.  **[TROW_3381126_6]**  They could introduce alternatives quickly in custom target date solutions with plan sponsors.  **[TROW_3381126_6]**  CEO Robert Sharps noted limited interest from plan sponsors due to liquidity and fee sensitivity issues.  **[TROW_3381126_6]** 

7. **Decumulation Products and Retirement Income**  
**Q:** What opportunities exist for decumulation products?  
**A:** Dorothy Sawyer emphasized offering diverse retirement income solutions due to varying participant needs.  **[TROW_3381126_7]**  They currently offer managed payout solutions in nearly **60 retirement plans** covering about **20%** of assets under administration.  **[TROW_3381126_7]**  Plans include launching a **Managed Lifetime Income** product in Q4 and a personalized retirement manager in Q3.  **[TROW_3381126_7]** 

8. **Competitive Position in Decumulation**  
**Q:** Does BlackRock's Paycheck affect T. Rowe's position?  
**A:** Dorothy Sawyer believes T. Rowe Price is well-positioned, already offering comparable retirement income products and planning new launches later this year.  **[TROW_3381126_12]**  She highlights their unique breadth across plan sponsors, investors, intermediaries, institutions, and global clients.  **[TROW_3381126_12]** 

9. **Expense Items: UK Benefit and Research Fees**  
**Q:** What impacts expenses: UK benefit and research fees?  
**A:** CFO Jen Dardis clarified that a non-recurring UK benefit in Q1 won't materially affect future operations.  **[TROW_3381126_13]**  On research fees, they remain committed to external research, but the mix of hard and soft dollars will vary due to regulations and client preferences.  **[TROW_3381126_13]** 

8b2622768a9d89a6930650ccea7fc34e7771e290e7abcc5d768a10eb1b88527a

- **T. Rowe Price's acquisition of Oak Hill Advisors (OHA) has positioned the firm strongly in alternative investments, particularly in private credit.** They are leveraging OHA's **30-year track record** and T. Rowe Price's distribution network to penetrate the wealth channel with products like **OCREDIT**, expecting to establish more momentum going forward.  **[TROW_3394675_11]**
- **Significant large mandate wins in fixed income demonstrate T. Rowe Price's strong positioning with scale buyers.** The firm secured **six new wins over $1 billion each** in the second quarter, and the pipeline suggests additional opportunities, indicating healthy demand for their fixed income offerings.  **[TROW_3394675_8]** **[TROW_3394675_6]**
- **Expansion of distribution channels through strategic partnerships is expected to drive market share gains.** T. Rowe Price has formed a new partnership with a large wealth platform, providing additional shelf space and the opportunity to engage with **over 10,000 financial advisers**, allowing the firm to meaningfully increase its share over time.  **[TROW_3394675_7]**

59cda1e3ed0bd752a5f3e8e649bd7af1f8f3aab754d0118e5692cce63278b4c5

1. **Organic Growth Outlook**  
   **Q:** Unpack Q4 outflows excluding VA; thoughts on '25 flows?  
   **A:** Excluding the VA loss, 2024 outflows would be less than half of 2023 levels, showing substantive progress.  **[TROW_3405434_5]**  Seasonal redemption pressure in Q4 is typical, but underlying trends are improving.  **[TROW_3405434_5]**  For 2025, we expect sizable further improvement as we trend toward positive flows, though we may not get there for the full year.  **[TROW_3405434_5]** 

2. **Performance Decline**  
   **Q:** What caused the performance hit this quarter? Any actions planned?  
   **A:** It wasn't a great quarter; aggregate statistics are soft and not where we want them.  **[TROW_3405434_13]**  Despite this, we're confident in our research platform and expect metrics to improve as prior poor periods roll off.  **[TROW_3405434_13]** 

3. **Institutional Backlog and Pipeline**  
   **Q:** Context around institutional backlog and funding timeline?  
   **A:** Despite a sizable termination, our risk-weighted pipeline increased quarter-over-quarter.  **[TROW_3405434_8]**  Over the next 12 months, we have broad-based opportunities across asset classes, with momentum in active equity, fixed income, and a strong pipeline in retirement date products.  **[TROW_3405434_8]** 

4. **Expense Growth in 2025**  
   **Q:** How are you thinking about expense growth next year and key investments?  
   **A:** We're aiming to align expense growth with forecasted revenue growth.  **[TROW_3405434_14]**  Given stronger revenue momentum into 2025, our opening expense guide may be slightly higher than last year's.  **[TROW_3405434_14]**  Investments focus on ETFs, expanding marketing outside the U.S., alternative sales platforms, and improving operational efficiency.  **[TROW_3405434_14]** 

5. **Private Credit Opportunities**  
   **Q:** Positioning for expected pickup in private credit activity?  
   **A:** OHA closed its first dedicated senior private lending fund at **$2 billion**.  **[TROW_3405434_7]**  OHA had a record quarter with **$5.5 billion** in new capital commitments, bringing the year-to-date to over **$9 billion**, with a notable portion in private credit.  **[TROW_3405434_7]**  We expect alternatives flow to accelerate into 2025.  **[TROW_3405434_7]** 

6. **ETF Expansion vs. Cannibalization**  
   **Q:** Is the ETF franchise expanding reach or cannibalizing funds? Cost differences?  
   **A:** We're reaching new buyers, including ETF-exclusive advisers, and offering strategies not available in open-ended funds.  **[TROW_3405434_9]**  There's some cannibalization, but a substantial portion is new and incremental.  **[TROW_3405434_9]**  Cost to access is similar to open-ended funds.  **[TROW_3405434_9]** 

7. **Retirement Market Growth**  
   **Q:** Update on retirement market and steps driving growth?  
   **A:** We have strong momentum across retirement offerings, including a custom glide path win.  **[TROW_3405434_6]**  New products like Personalized Retirement Manager and a lifetime income product incorporating a QLAC have been launched on our recordkeeping platform.  **[TROW_3405434_6]**  We aim to extend these to other platforms over time.  **[TROW_3405434_6]** 

8. **Managed Lifetime Income Costs**  
   **Q:** How does adding an insurance guarantee affect costs and returns?  
   **A:** The design balances risk and cost by using QLACs, which are affordable relative to other fixed annuities.  **[TROW_3405434_10]**  The guarantee comes at some cost but offers an optimal outcome for participants.  **[TROW_3405434_10]** 

9. **Private Markets in Retirement Plans**  
   **Q:** How close are we to seeing private market allocations in target date funds?  
   **A:** It's hard to know due to regulatory uncertainty.  **[TROW_3405434_11]**  The defined contribution market is fee-sensitive, and platforms aren't designed for private market alternatives.  **[TROW_3405434_11]**  When regulatory clarity comes, we'll be an attractive partner with a range of options.  **[TROW_3405434_11]** 

10. **Stickiness of Sub-advised Assets**  
    **Q:** What's the makeup of the other $85B client base? Why is it stickier than VA?  
    **A:** The other $85 billion is sub-advised assets in retirement plans outside of variable annuities, which tend to be more sticky.  **[TROW_3405434_12]**  Unlike VA, these assets don't face the same underlying pressures.  **[TROW_3405434_12]** 

f716a5e03667eb33f3aaffff26f6a28c7303050acb3b2b3829076d3b8bdb51c8

| Year  | Amount Due (Millions) | Debt Type                  | Interest Rate (%)         | % of Total Debt          |
|-------|------------------------|----------------------------|---------------------------|--------------------------|
| 2035  | 75.8 **[0001113169-24-000030_trow-20240930.htm:9]**          | Affiliated CLOs **[0001113169-24-000030_trow-20240930.htm:9]**    | 1.15 - 12.60 **[0001113169-24-000030_trow-20240930.htm:9]**      | 100% = (75.8 / 75.8) * 100 **[0001113169-24-000030_trow-20240930.htm:9]** |

72e5c4c5d5ace10b7458a9fdbf2c92aeaa73052db83f9d644962a82610d38a19

- T. Rowe Price reported **$3.7 billion in net outflows** in Q2 2024, with outflows remaining concentrated in equity products, indicating ongoing challenges in attracting and retaining assets.  **[TROW_3394675_3]**
- The company is experiencing **fee rate compression**, with the annualized effective fee rate decreasing to **41.6 basis points** in Q2 2024 as clients shift to lower-fee products, which may pressure revenue growth.  **[TROW_3394675_3]** **[TROW_3394675_12]**
- **Adjusted operating expenses increased by 7.8%** from Q2 2023 due to higher market-driven expenses, and the firm expects 2024 expenses to rise by **6% to 8%** over 2023 levels, potentially impacting profitability.  **[TROW_3394675_3]**

21ec18c4a108b7aea5a8d7df8f0b867adb2722cabb2a6edf2bdd45e45c2a7b53

- **Significant Improvement in Net Outflows due to Strong Investment Performance**: Net outflows for Q1 2024 were **$8 billion**, about **half the level** of the first quarter last year, driven by improved investment performance, particularly in U.S. equity funds, and higher sales. The CEO expects **substantial improvement** in flows over the year.  **[TROW_3381126_4]**
- **Launch of New Retirement Income Solutions Enhancing Product Offerings**: T. Rowe Price is expanding its retirement solutions with the upcoming **Personalized Retirement Manager** launching in Q3 2024 and a **Managed Lifetime Income** product launching in Q4 2024, aiming to meet diverse client needs in decumulation. Existing managed payout solutions are used by nearly **60 retirement plans**, representing approximately **20%** of assets under administration.  **[TROW_3381126_10]** ,  **[TROW_3381126_7]**
- **Growth Potential in Alternatives Business via Oak Hill Advisors (OHA)**: OHA's **capital raising pipeline is strengthening**, with expectations of **mid-teens growth** in capital under management and **high single-digit growth** in fee-based AUM in 2024. The **OCREDIT** product has **$1.4 billion** in invested assets as of March 31, 2024, and is launching on multiple platforms, indicating potential for future revenue growth.  **[TROW_3381126_7]**

5586f3d8e5cd75a3ae89351393dc26e51bd8cede7cd2be983b59747ccbb5dbb9

1. **Improving Sales Pipeline**  
   **Q:** Can you expand on the sales pipeline and outlook?  
   **A:** Rob Sharps highlighted a significant improvement in flows, with net outflows **$24 billion** less in the first half of 2024 compared to 2023.  **[TROW_3394675_6]**  Target Date flows were strong at **$10.5 billion**, exceeding last year's **$9.9 billion**.  **[TROW_3394675_6]**  He noted strength in alternatives, with **$172 million** of flows into OCREDIT  **[TROW_3394675_6]** , and gross sales were up in most channels and geographies.  **[TROW_3394675_6]**  While Q2 benefited from a sizable mandate, he expects some seasonality ahead but believes outflows will remain below last year's levels.  **[TROW_3394675_6]** 

2. **Fee Rate Compression**  
   **Q:** Why did the pace of fee rate compression pick up?  
   **A:** Jen Dardis explained that although they typically see **1% to 1.5%** annual fee compression, this quarter experienced noise due to clients choosing lower-fee products and vehicle realignments.  **[TROW_3394675_12]**  Rob Sharps added that success in lower-fee areas like fixed income and integrated equity pressures the fee rate but remains good business, and growth in alternatives may offset some compression.  **[TROW_3394675_12]** 

3. **Second Half Flows and Competition**  
   **Q:** Why expect higher outflows in the second half?  
   **A:** Rob Sharps clarified that he doesn't expect redemptions to pick up but noted that Q2 net flows were elevated due to a sizable mandate, and future quarters may not match that level.  **[TROW_3394675_13]**  He emphasized opportunities in multi-asset, ETFs, and alternatives, preferring to focus on T. Rowe Price-controlled strategies while remaining open to partnerships when beneficial.  **[TROW_3394675_13]** 

4. **Large Bond Mandate Details**  
   **Q:** What's the size and status of the bond mandate?  
   **A:** While not disclosing the exact size, management stated it was substantial and funded in the second quarter, contributing significantly to fixed income assets.  **[TROW_3394675_8]**  The six new wins over **$1 billion** each also funded in Q2.  **[TROW_3394675_8]** 

5. **ETF Strategy and Distribution**  
   **Q:** Elaborate on your ETF sales approach and strategy.  
   **A:** Management described a dedicated ETF sales team supporting efforts to reach ETF-focused advisers, expanding beyond traditional mutual fund clients.  **[TROW_3394675_10]**  They offer both clones of existing strategies and new products, aiming to provide full investment capabilities in ETF form.  **[TROW_3394675_10]**  The ETFs have attracted a diverse investor base, including institutional and international clients, and they plan to broaden their ETF offerings thoughtfully.  **[TROW_3394675_9]** **[TROW_3394675_10]** 

6. **New Distribution Partnership**  
   **Q:** What's expected from the new broker partnership?  
   **A:** The new partnership grants additional shelf space and access to **10,000** representatives, enhancing opportunities to increase market share where their presence was previously limited.  **[TROW_3394675_7]**  They anticipate mutual benefits from the arrangement without disclosing specific terms.  **[TROW_3394675_7]** 

7. **Differentiation of OCREDIT**  
   **Q:** How is OCREDIT differentiated from competitors?  
   **A:** Rob Sharps emphasized that OCREDIT leverages Oak Hill Advisors' **30-year track record** in private credit and T. Rowe Price's strong relationships in the wealth channel.  **[TROW_3394675_11]**  Their field team engages advisers new to alternatives, helping wealth platforms broaden alternatives penetration with a compelling, differentiated offering.  **[TROW_3394675_11]** 

8. **Handling Cash in Retirement Accounts**  
   **Q:** How do you handle cash options for clients?  
   **A:** Rob Sharps stated it's predominantly client-driven, offering multiple money market fund options in the individual investor business.  **[TROW_3394675_5]**  They provide stable value funds and money market funds in retirement plan services but don't have a significant sweep business like some wealth platforms.  **[TROW_3394675_5]** 

1a23fefb416364a230a47a8ce31078e5e5b060269867074edc92a48886e8588d

1. **2024 Sales Outlook**  
   **Q:** How will sales and redemptions improve in 2024?  
   **A:** Management expects outflows in 2024 but anticipates improvement from 2023. Strategies with substantial outflows in prior years had better performance in 2023, leading to lower client redemptions and improved sales. Early signs show better gross sales, reduced at-risk assets, and positive momentum, including nearly **$3 billion** in January retirement date flows.  **[TROW_3372438_7]** 

2. **Share Buyback Plans**  
   **Q:** What are your share repurchase plans for 2024?  
   **A:** The company plans to be opportunistic with share repurchases but doesn't expect to return to pre-2023 levels of **$1 billion** per year. Buybacks may exceed 2023 levels depending on circumstances, aiming to reduce the share count over time.  **[TROW_3372438_13]** 

3. **Fixed Income Flows**  
   **Q:** How will fixed income flows trend going forward?  
   **A:** Management anticipates fixed income flows to improve as clients reengage due to higher rates offering attractive returns. Q4 outflows were driven by a sizable redemption in a short duration strategy, not indicative of future trends. The firm is investing in fixed income capabilities and expects growth in this area.  **[TROW_3372438_9]** 

4. **OHA and OCREDIT Growth**  
   **Q:** Can you discuss the next chapter for OHA and OCREDIT?  
   **A:** OCREDIT raised over **$100 million** since September and expects similar amounts in Q1, with momentum building throughout the year. Despite a competitive private credit market, management is confident that T. Rowe Price and OHA's combined strengths will lead to success with OCREDIT and future products. OHA's fee-based AUM in alternatives was up **10%** in 2023, and the firm expects an acceleration in flows in 2024.  **[TROW_3372438_8]** 

5. **International Business Growth**  
   **Q:** What are your growth expectations for non-U.S. business?  
   **A:** Management expects growth outside the U.S. to outpace domestic growth, targeting focus markets like Japan, Australia, Germany, Italy, the U.K., and Canada. They anticipate meaningful leverage from existing investments in these regions, leading to increased profitability over time.  **[TROW_3372438_10]** **[TROW_3372438_11]** 

6. **Retiree Inc. Acquisition**  
   **Q:** What is the strategic rationale for acquiring Retiree Inc.?  
   **A:** The acquisition brings proprietary algorithms that help retirement investors transition from accumulation to decumulation, optimizing Social Security elections and withdrawal strategies. This enhances the firm's advisory capabilities, adds value for clients, and offers potential partnerships in the wealth channel. Management sees significant opportunity to differentiate offerings and grow in retirement services.  **[TROW_3372438_14]** 

7. **Performance Fees Impact**  
   **Q:** Can you quantify the impact of performance fees in Q4?  
   **A:** Performance fees amounted to **$25 million** in Q4, primarily from OHA's accounts that crystallize during the year, typically in the fourth quarter but can occur throughout the year.  **[TROW_3372438_12]** 

7eb4110fdd38a86be8b41f68b590f43c5963a4921b7a6c04e4311b382ed96d73

T Rowe Price Group Inc (TROW)

Financials