Q1 2024 T Rowe Price Group Inc Earnings Call Transcript
Key Points
- Assets under management increased to $1.54 trillion, a 15% rise from the previous year, driven by strong market performance.
- First quarter net outflows were significantly reduced to $8 billion, half the level of the previous year, indicating improved client demand and investment performance.
- 65% of T. Rowe Price Group Inc (TROW)'s funds outperformed their peer group medians on a 1-year basis, showcasing strong investment performance.
- The firm's retirement business remains robust, with over $1 trillion in retirement assets, highlighting its critical role in the company's portfolio.
- T. Rowe Price Group Inc (TROW) retained its #2 position among over 330 asset managers in Institutional Investors 2024 ranking, and was named one of Fortune Magazine's World's Most Admired Companies for the 14th consecutive year.
- Despite overall improvement, T. Rowe Price Group Inc (TROW) still expects net outflows in 2024, though less severe than previous years.
- Net flows in April showed weakness due to rebalancing activities among large clients, indicating potential volatility in short-term flows.
- U.S. equity, particularly large and mid-cap growth strategies, continued to see outflows, although at a reduced rate compared to the previous year.
- Fixed income experienced mixed results, with strong investment-grade flows offset by continued outflows from stable value in the Defined Contribution channel.
- Adjusted operating expenses are expected to rise by 5% to 7% over the previous year, driven by market-driven expenses and ongoing investments in strategic initiatives.
Good morning. My name is Norma, and I will be your conference facilitator today. Welcome to T. Rowe Price's First Quarter 2024 Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded and will be available for replay on T. Rowe Price's website shortly after the call concludes.
I will now turn the call over to Linsley Carruth, T. Rowe Price's Director of Investor Relations. Please go ahead.
Hello, and thank you for joining us today for our first quarter earnings call. The press release and the supplemental materials document can be found on our IR website at investors.troweprice.com.
Today's call will last approximately 45 minutes. Our CEO and President, Rob Sharps; CFO, Jen Dardis, and Head of Global Distribution, Dee Sawyer, will discuss the company's results for about 20 minutes. Then we'll open it up to your questions, at which time we'll be joined by Head of Global Investments, Eric Veiel. We ask that you limit it to 1 question per participant.
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