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• Assets Under Management (AUM): $1.6 trillion at the end of 2024.

• Net Outflows: $43.2 billion for the full year 2024; $19.3 billion for Q4 2024.

• Adjusted Diluted EPS: $2.12 for Q4 2024; $9.33 for the full year 2024, up 23% from 2023.

• Investment Advisory Revenue: $1.7 billion for Q4 2024; $6.4 billion for the full year 2024, up 12.1% from 2023.

• Adjusted Net Revenue: $1.8 billion for Q4 2024; nearly $7.2 billion for the full year 2024, up 10.1% from 2023.

• ETF Net Inflows: $1.4 billion for Q4 2024; $4.7 billion for the full year 2024.

• Target Date Net Inflows: $2.2 billion for Q4 2024; $16.3 billion for the full year 2024.

• Adjusted Operating Expenses: $1.2 billion for Q4 2024; $4.46 billion for the full year 2024, up 6.3% from 2023.

• Share Buybacks: $71 million in Q4 2024; $355 million for the full year 2024.

• Cash and Discretionary Investments: $3.1 billion at year-end 2024.

• Warning! GuruFocus has detected 5 Warning Signs with TROW.

Release Date: February 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• T. Rowe Price Group Inc (NASDAQ:TROW) closed 2024 with $1.6 trillion in assets under management, demonstrating significant scale.

• The company saw a substantial reduction in net outflows, with a 30% decrease from 2022, indicating improved client retention.

• T. Rowe Price Group Inc (NASDAQ:TROW) expanded its ETF business, closing the year with almost $8 billion in assets under management.

• The target date franchise led the industry with net inflows of $16.3 billion for the year, showcasing strong demand for retirement solutions.

• The company returned over $1.4 billion to stockholders in 2024, highlighting a commitment to shareholder value.

Negative Points

• T. Rowe Price Group Inc (NASDAQ:TROW) experienced $43.2 billion in net outflows for the year, despite improvements.

• The company faced higher fee compression than average, with a 2% decrease in effective fee rates due to a shift in asset mix.

• Performance in certain equity strategies, such as mid-cap growth and emerging markets equity, was below expectations.

• The fixed income division saw challenges in high-yield and international bond products, with performance lagging peers.

• Real estate costs are expected to impact 2025 expenses due to the move to a new headquarters, adding $20-$30 million in costs.

Q & A Highlights

Q: Can you elaborate on the partnership with Aspida and the opportunities in the insurance sector? A: Robert Sharps, CEO, explained that the partnership with Aspida and Ares is an exciting opportunity to refine T. Rowe Price's insurance asset management offerings, particularly in the life and annuity space. This partnership is expected to create additional opportunities with other insurers. The company is also exploring co-developing investment offerings with Aspida and Ares. The insurance sector is a significant focus area, with improved organic growth in fixed income driven by commitments from existing insurance clients. The partnership with Aspida is not exclusive, and T. Rowe Price is open to further strategic investments or M&A to expand capabilities and client reach.