Like the investment fund management division of a company such as Fidelity or Charles Schwab.

Like Vanguard, but primarily focused on actively managed investment funds.

Major Products and Services of T. Rowe Price (TROW)

• Mutual Funds: Professionally managed investment funds that pool money from multiple investors to invest in a diversified portfolio of securities.
• Target Date Funds: Specific mutual funds designed for retirement savings that automatically adjust their asset allocation over time, becoming more conservative as the target retirement date approaches.
• Exchange-Traded Funds (ETFs): Investment funds that hold assets like stocks, commodities, or bonds, and trade on stock exchanges throughout the day, offering diversification and liquidity.
• Separate Accounts (Institutional Investment Management): Customized investment portfolios managed directly for institutional clients, such as pension funds, endowments, and foundations, tailored to their specific objectives.
• Retirement Plan Services: Comprehensive services offered to employers and individuals for various retirement plans, including 401(k)s and IRAs, encompassing recordkeeping, administration, and investment solutions.
• Investment Advisory Services: Professional guidance and financial planning assistance provided to individuals and institutions to help them achieve their financial goals through personalized investment strategies.

T. Rowe Price (TROW) Major Customers

T. Rowe Price primarily serves a diverse range of clients, encompassing individuals, financial intermediaries, and institutions. While a significant portion of its assets under management ultimately benefits individual investors (either directly or through intermediaries and retirement plans), the company's business model includes serving distinct categories of customers.

Here are the three major categories of customers that T. Rowe Price serves:

• Individual Investors: This category includes retail clients who directly invest with T. Rowe Price through various accounts such as IRAs, 529 plans, brokerage accounts, and taxable investment accounts. It also encompasses individuals whose assets are managed by T. Rowe Price through employer-sponsored retirement plans (like 401(k)s), even if the direct relationship is with the plan sponsor.
• Financial Intermediaries: T. Rowe Price partners with a wide array of financial intermediaries, including financial advisors, broker-dealers, banks, and insurance companies. These intermediaries distribute T. Rowe Price's mutual funds, exchange-traded funds (ETFs), and other investment products to their own client bases, which are often individuals or smaller institutions.
• Institutional Investors: This category comprises large organizations that directly contract with T. Rowe Price for investment management services. Examples include corporate and public pension funds, endowments, foundations, sovereign wealth funds, and other financial institutions. These clients often utilize T. Rowe Price for separately managed accounts, collective investment trusts, or sub-advisory services.

• Bloomberg L.P.
• S&P Global Inc. (SPGI)
• MSCI Inc. (MSCI)
• FactSet Research Systems Inc. (FDS)

Robert W. Sharps Chief Executive Officer and President

Mr. Sharps is the Chief Executive Officer and President of T. Rowe Price Group, Inc., and also chairs its Board of Directors and key committees. He joined T. Rowe Price in 1997 as an analyst specializing in financial services stocks and served as the lead portfolio manager for the Institutional Large-Cap Growth Equity Strategy for 15 years until 2016. He transitioned to CEO at the beginning of 2022, having previously held roles including president, head of Investments, and group chief investment officer. Prior to T. Rowe Price, Mr. Sharps completed an internship as an equity research analyst at Wellington Management. He began his career in 1993 as a senior management consultant at KPMG Peat Marwick, where he focused on corporate transactions.

Jennifer Dardis Chief Financial Officer and Treasurer

Ms. Dardis is the Chief Financial Officer and Treasurer of T. Rowe Price Group, Inc. She joined the firm in 2006, initially in a corporate strategy role within the CFO Group, and later became the head of Corporate Strategy in 2016. Most recently, she was the head of Finance before becoming CFO in July 2021. Ms. Dardis successfully led the firm through its largest acquisition, Oak Hill Advisors (OHA) for $4.2B. Before joining T. Rowe Price, she held positions in investor relations at Constellation Energy, in finance and business development at Energy Merchant, and in mergers and acquisitions at SG Cowen.

Kimberly H. Johnson Chief Operating Officer

Ms. Johnson is the Chief Operating Officer of T. Rowe Price and a member of the Management Committee. She joined T. Rowe Price in 2022, bringing extensive experience in technology, operations, and corporate strategy. As COO, her responsibilities include leading the Chief Technology Office, Chief Data Office, Corporate Real Estate & Workplace Services, Enterprise Risk Management, Global Client Account Services, Global Investment Operations, and the Transformation Office. Prior to T. Rowe Price, Ms. Johnson was the executive vice president and chief operating officer at Fannie Mae, where she was responsible for technology, operations, data, modeling, analytics, information security, resiliency, innovation, and corporate strategy. She also served as Fannie Mae's Chief Risk Officer. Earlier in her career, she was a Director at Credit Suisse and a U.S. Equity Trader at D.E. Shaw & Co.

Justin Thomson Head of Investment Institute and Chief Investment Officer

Mr. Thomson is the Head of the Investment Institute and Chief Investment Officer. He joined T. Rowe Price in 1998, with his investment experience beginning in 1991. He previously served as the head of International Equity and Chief Investment Officer for International Equities. During his tenure, he was the lead portfolio manager for the International Small-Cap Strategy from 1998 to 2020 and managed the European Small-Cap Strategy from 2008 to 2016. Before joining T. Rowe Price, Mr. Thomson managed European small-cap, global small-cap, and German all-cap portfolios at G.T. Capital/LGT/Invesco.

David Oestreicher General Counsel and Corporate Secretary

Mr. Oestreicher is the General Counsel and Corporate Secretary for T. Rowe Price Group, Inc., and a member of the firm's Management Committee. He oversees the legal, compliance, and audit functions globally. He has been with T. Rowe Price since 1997, where his main areas of practice prior to his current role included U.S. and international investment adviser regulation, global compliance, and non-U.S. fund regulation. Before joining T. Rowe Price, Mr. Oestreicher served as special counsel in the Division of Market Regulation with the U.S. Securities and Exchange Commission and as a judicial law clerk with the Superior Court of Connecticut.

The key risks to T. Rowe Price (TROW) primarily stem from structural shifts in the asset management industry and broader market dynamics:

1. Shift to Passive Investing and Fee Compression: T. Rowe Price's traditional business model, heavily reliant on actively managed funds with higher fees, faces significant pressure from the ongoing industry-wide shift towards lower-cost passive investment vehicles like index funds and ETFs. This trend has contributed to "deteriorating business model" concerns and has resulted in persistent negative net flows of assets under management (AUM) for T. Rowe Price, even during periods of market growth. The inability to significantly alter its fee-based model to compete with significantly cheaper alternatives poses a long-term challenge to revenue growth and profitability.

2. Fluctuations in Financial Markets: A substantial portion of T. Rowe Price's revenues are derived from advisory fees based on the value of its managed investment portfolios. Consequently, any downturns or volatility in global financial markets directly impact the value of assets under management. A decrease in AUM due to market declines can lead to a significant reduction in advisory fees and overall revenues, and may also trigger investors to withdraw their investments, further exacerbating the decline in AUM.

3. Intense Competition and Investor Mobility: The asset management industry is highly competitive, with T. Rowe Price vying for assets against a wide array of firms, including those that specialize in low-cost passive investing. Investors have the flexibility to withdraw their funds at any time, often without significant penalties. This high degree of investor mobility means that T. Rowe Price constantly faces the risk of redemptions and shifts in client portfolios, which can reduce its AUM if its investment performance lags or if competitors offer more attractive or lower-cost products.

T. Rowe Price (TROW) is expected to drive future revenue growth over the next two to three years through several strategic initiatives focused on product expansion, market penetration, and leveraging its core strengths. Key drivers include:

1. Expansion of Exchange-Traded Fund (ETF) Offerings and Assets Under Management (AUM): T. Rowe Price is actively growing its ETF business, which has seen significant net inflows and AUM increases. The company plans to continue broadening its ETF offerings, with expectations to cover over three-quarters of the Morningstar AUM universe by the end of 2026.

2. Growth in Multi-Asset and Alternative Investment Strategies: The firm is focusing on expanding its multi-asset and alternative investment capabilities. This includes strong performance and net inflows in target-date funds and private credit. T. Rowe Price is also engaging in strategic partnerships, such as a collaboration with Goldman Sachs, to launch co-branded products and integrate alternative investments into client portfolios, including public-private market solutions expected by mid-2026.

3. Strengthening and Expanding Retirement Solutions: Leveraging its established leadership in the retirement space, particularly with its target-date franchise, T. Rowe Price aims to introduce customized retirement solutions and income products. The company is also developing a managed account platform for independent advisors to provide participant advice within and outside of retirement plans, anticipated in the latter half of 2026.

4. Global Distribution and International Market Penetration: T. Rowe Price is actively pursuing positive net inflows from clients outside the U.S., particularly in regions like APAC for global equity and EMEA for alternatives. The company continues to emphasize expanding its global distribution footprint, with a focus on markets such as Japan and Switzerland.

Share Repurchases

• T. Rowe Price's board of directors approved a repurchase plan of 24.1 million shares in March 2020. This authorization was increased by nearly 15 million shares in December 2020, bringing the total authorization to 39.1 million shares.
• As of December 31, 2024, approximately 18.4 million shares remained under the existing authorization.
• Actual share repurchases were $849.8 million in 2022, $254.4 million in 2023, and $337.2 million in 2024. The company also reported a $108.56 million buyback of 1,210,000 shares between April and June 2025.

Outbound Investments

• In October 2021, T. Rowe Price announced the acquisition of Oak Hill Advisors, L.P. (OHA), an alternative credit manager, for up to approximately $4.2 billion. The deal included $3.3 billion payable at closing (74% in cash and 26% in T. Rowe Price common stock) and up to an additional $900 million in cash based on business milestones starting in 2025.
• As part of the OHA acquisition, T. Rowe Price committed $500 million for co-investment and seed capital alongside OHA management and investors.
• In April 2023, T. Rowe Price completed the acquisition of Retiree, Inc., a fintech firm specializing in retirement income planning software, to enhance its retirement income capabilities. Financial terms were not disclosed.

Capital Expenditures

• T. Rowe Price invests substantially to upgrade technology to align with changing customer needs, which leads to increased expenses.