Q3 2024 T Rowe Price Group Inc Earnings Call Transcript
Key Points
- T. Rowe Price Group Inc (TROW) reported a 3.9% increase in assets under management, reaching $1.63 trillion by the end of the third quarter.
- The company's adjusted earnings per share rose by over 18% from the previous year, driven by higher average AUM and a lower effective tax rate.
- T. Rowe Price Group Inc (TROW) is expanding its ETF franchise, with positive net inflows and top quartile performance in several ETF categories.
- The company launched innovative retirement solutions, including Personalized Retirement Manager and Managed Lifetime Income, enhancing its leadership in the retirement sector.
- T. Rowe Price Group Inc (TROW) achieved a record quarter of capital raising in its alternatives segment, with significant commitments in private credit.
- The company experienced $12.2 billion in net outflows during the third quarter, with expectations of further increases in the fourth quarter due to seasonal trends and a large sub-advised variable annuity termination.
- Despite improvements, T. Rowe Price Group Inc (TROW) continues to face challenges with net outflows in its US equity products, particularly in growth strategies.
- The company's effective fee rate declined as assets shifted into lower fee vehicles and asset classes.
- Performance in the third quarter was negatively impacted by underlying stock selection and an overweight towards US equities.
- The variable annuity business, which has been experiencing net outflows for several years, is not expected to change meaningfully, impacting overall growth.
Good morning. My name is Daniel, and I will be your conference facilitator today. Welcome to T Rowe Price's third 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 third 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 Chair, CEO, and President, Rob Sharps and CFO, Jen Dardis, will discuss the company's results for about 15 minutes, then we'll open it up for your questions. We ask that you limit it to one question per participant.
I'd like to remind you that during the course of this call, we may make a number of
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