Q2 2024 T Rowe Price Group Inc Earnings Call Transcript
Key Points
- T. Rowe Price Group Inc (TROW) ended the quarter with $1.57 trillion in assets under management and $3.7 billion in net outflows, showing steady progress in flows and investment performance.
- Two-thirds of T. Rowe Price Group Inc (TROW)'s funds beat their peer group one-year medians, with over 40% in the top quartile.
- The company's ETF business grew significantly, reaching $5.3 billion in assets under management as of June 30, 2024, up from $1.2 billion in June 2023.
- T. Rowe Price Group Inc (TROW) reported strong performance in both equity and fixed income franchises, with several funds achieving top quartile performance across multiple time periods.
- The company recorded $10.5 billion in net inflows to target date strategies in the first half of the year, indicating strong demand for these products.
- T. Rowe Price Group Inc (TROW) reported $3.7 billion in net outflows for Q2 2024, indicating ongoing challenges in retaining assets.
- The annualized effective fee rate for Q2 2024 was 41.6 basis points, down from the prior quarter, due to a mix shift in assets under management to lower fee products and asset classes.
- Adjusted operating expenses increased by 7.8% from Q2 2023, driven by higher interim bonus accruals, distribution and servicing fees, and increased advertising and promotional spend.
- Outflows remain concentrated in equity products, despite some equity products experiencing strong inflows.
- The company expects 2024 adjusted operating expenses to be up 6% to 8% over the comparable full year 2023 amount, driven by the sustained rise in equity markets and the impact on market-driven expenses.
Good morning. My name is Daniel. And I will be your conference facilitator today. Welcome to T. Rowe Price's second-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.
Hello. And thank you for joining us today for our second quarter earnings call. The press release and a 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; and CFO, Jen Dardis, will discuss the company's results for about 10 minutes. Then we'll open it up to your questions, at which time will be joined by Head of Global Investments, Eric Veiel. We ask that you limit it to one question per participant.
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