T. Rowe Price Group reports developments tied to its global asset management business, including assets under management, client flows, earnings, dividends, stockholder meeting results, and capital return activity. Company updates also cover its investment platform across equity, fixed income, multi-asset, and alternative strategies, with recurring references to retirement-related assets and client solutions.
News about T. Rowe Price also includes product and platform changes such as fixed income vehicles, CLO activity, 529 education savings offerings, private credit initiatives associated with OHA, and investment commentary from the firm's research and portfolio teams.
T. Rowe Price has announced the appointment of Ben Riley, CFA®, to the newly created role of Head of Insurance, effective January 1, 2025. Riley will oversee a team responsible for insurance clients in North America and coordinate T. Rowe Price's global insurance efforts. He will report to Doug Greenstein, Head of Institutional Business Development for Americas.
Riley has been with T. Rowe Price since 2001 and joined the Americas Institutional Client Service team in 2007. In 2017, he became the firm's first senior relationship manager dedicated to insurance general account mandates. Under his leadership, T. Rowe Price's insurance business has experienced strong growth across multiple asset classes.
The appointment aims to drive growth and better serve clients with enhanced focus and expertise in the insurance sector. Riley highlighted T. Rowe Price's strengths in providing customized fixed income solutions and fundamental credit research, which are critical for insurance mandates.
T. Rowe Price has launched Managed Lifetime Income (MLI), a new retirement solution for defined contribution plans. MLI combines a managed payout investment from T. Rowe Price with a Qualifying Longevity Annuity Contract (QLAC) from Pacific Life to provide retirees with stable and predictable monthly income for life.
The solution offers payments from the managed payout investment for the first 15 years of retirement, followed by guaranteed QLAC payments for the participant's lifetime. MLI is integrated within T. Rowe Price's participant experience, including access to a retirement income estimator. This launch expands T. Rowe Price's retirement income solutions, giving clients the ability to choose between products with or without guaranteed income.
T. Rowe Price Group (NASDAQ-GS: TROW) reported preliminary month-end assets under management of $1.63 trillion as of September 30, 2024. The company experienced preliminary net outflows of $4.9 billion for September 2024 and $12.2 billion for the quarter-ended September 30, 2024. Quarterly net flows include $0.8 billion of Manager-driven distributions.
The firm's assets under management breakdown as of September 30, 2024:
- Equity: $832 billion
- Fixed income, including money market: $186 billion
- Multi-asset: $561 billion
- Alternatives: $52 billion
- Target date retirement portfolios: $482 billion
T. Rowe Price will release Q3 2024 earnings on November 1, 2024, at 7:00 AM ET, followed by an earnings call from 8:00 - 8:45 AM ET.
T. Rowe Price has released financial planning tips for retirement savers at every stage of their journey. The global investment management firm emphasizes the importance of retirement planning and its impact on financial confidence. According to a recent T. Rowe Price survey, pre-retirees with a formal, written financial plan are over 60% more confident about their retirement outlook compared to those without one.
Key insights include:
- The growing FIRE (Financial Independence, Retire Early) movement among millennials and Generation X
- The usefulness of Monte Carlo analysis for those approaching retirement
- The benefits of delaying Social Security claims until age 70
T. Rowe Price has also released a special edition of its podcast, 'CONFIDENT CONVERSATIONS® on Retirement,' and plans to launch its fourth season next month.
T. Rowe Price has published a new white paper revealing how combining an annuity with a drawdown strategy can balance retirement income and liquidity. The paper suggests that this approach can provide a high level of retirement income while maintaining adequate liquidity for retirees.
Key insights include:
- A growing trend of defined contribution participants staying in-plan upon retirement
- More plan sponsors exploring in-plan retirement income solutions
- Pairing drawdown strategies with annuities may better match retirees' needs for income and fund access
- The importance of due diligence for plan sponsors in insurer selection and product evaluation
T. Rowe Price aims to empower plan sponsors and advisors with research and knowledge to make impactful decisions for retirement savers at every stage.
Oak Hill Advisors (OHA) has led a comprehensive debt refinancing for Alkegen, a global specialty materials platform. OHA served as the lead lender and Lead Left Arranger, providing the largest portion of the new senior facility. The refinancing includes:
- A new $1,925 million first lien term loan and notes facilities
- A new $200 million first-out revolving credit facility
The proceeds will be used to refinance existing first lien term loans, pay down revolver borrowings, extend maturities, and provide liquidity for Alkegen's growth and operational plans. Additionally, most existing holders of Alkegen's secured and unsecured notes due 2028 and 2029 exchanged their notes for new second lien notes due 2029. Alkegen is also offering to exchange remaining notes for new second lien notes.
T. Rowe Price has announced the formation of the T. Rowe Price Investment Institute, set to launch on January 1, 2025. The Institute will focus on enhancing investment talent development and strengthening the delivery of proprietary investment insights to clients. Justin Thomson, a 26-year company veteran and current head of International Equity and chief investment officer, will lead the initiative.
The Institute aims to establish a center of excellence for developing differentiated investment thought leadership and internal talent. It will curate insights from T. Rowe Price's research organization, develop educational content, and engage with experts in business, academia, and other institutions on topics such as portfolio construction, behavioral finance, and geopolitics.
Thomson, based in London, brings over 33 years of investment experience to the role. The Institute is positioned as an important educational resource for investment professionals and clients, addressing the increasing risks in today's markets and the need for timely, actionable insights.
T. Rowe Price is launching the third season of its investment-themed podcast series, 'The Angle', focusing on the upcoming U.S. presidential election. The new season, titled 'Inside the U.S. Election Maze: Unraveling Fiscal, Trade, and Energy Plans', debuts on September 25th with weekly episodes through October 9th. Hosted by Ritu Vohora, a global capital markets investment specialist, the series will feature discussions with experts on critical policy issues like the economy, trade, and energy transition. Notable guests include Blerina Uruçi, Gil Fortgang, Chris Kushlis, and Rick de Los Reyes. Episodes will be available on platforms like Spotify and Apple Podcasts. Previous seasons explored topics such as the blue economy and artificial intelligence.
T. Rowe Price (TROW) has been named to Constellation's Finance organization's 2024 DEI Honor Roll, recognizing the company's commitment to diversity, equity, and inclusion. The global investment management firm is one of 13 companies honored for their dedication to fostering pivotal DEI policies and programs. T. Rowe Price's DEI strategy is integral to its core values and business strategies, focusing on growing and supporting a diverse workforce, engaging and developing associates, and sustaining an inclusive culture.
With a global diverse population of 58%, T. Rowe Price applies DEI strategies in training, leadership development, and associate-led resource groups. The company underwent assessment based on various factors, including board composition, corporate DEI framework, and policies. This recognition highlights T. Rowe Price's commitment to creating a welcoming environment for all and its dedication to long-term success through diversity of backgrounds, perspectives, and experiences.
T. Rowe Price's 2024 Defined Contribution Consultant Study reveals key trends in retirement planning. Retirement income has become a priority, with only 19% of plan sponsors lacking an opinion on it, down from 59% in 2021. Personalization is seen as crucial, especially for those nearing retirement, with strong support for managed accounts as an opt-in option.
Other findings include:
- 89% of firms focus more on diversification in fixed income investments
- Support for non-traditional bonds in target date solutions
- Preference for active management in return-seeking fixed income strategies
- Transition from mutual funds to collective investment trusts (CITs) for target date solutions
- 70% predict increased availability of in-plan emergency savings programs
The study, based on insights from 35 DC consultants and advisory firms managing over $7.5 trillion, highlights the evolving landscape of retirement planning and investment strategies.