T Rowe Price Grp Stock Price, News & Analysis

T. Rowe Price Group (NASDAQ: TROW) has launched the Retirement Blend Fund series, enhancing its target date investment solutions. This series combines active and passive strategies for better diversification and cost management. The funds are aimed at investors seeking simplified retirement options, with net expense ratios ranging from 0.19% to 0.44%. The firm, managing $459 billion in multi-asset portfolios, is the largest active target date manager in the U.S. The Retirement Blend strategy has been available since 2018, but now extends to the mutual fund format.

T. Rowe Price reported preliminary assets under management of $1.62 trillion as of June 30, 2021, reflecting an increase from $1.59 trillion in May 2021. The firm experienced client transfers of $2.8 billion in June, totaling $9.2 billion for the quarter and $14.8 billion year-to-date. Significant transfers included $10.8 billion to target-date retirement trusts for the year. The investment breakdown shows the firm managed $866 billion in U.S. mutual funds and $757 billion across separate accounts, demonstrating strong financial performance amid market conditions.

T. Rowe Price Group (NASDAQ: TROW) has declared a special cash dividend of $3.00 per share, payable on July 7, 2021, to stockholders of record by the close of business on June 25, 2021. The decision reflects the company's robust cash position, ensuring it can continue executing its business strategy post-dividend. CEO William J. Stromberg emphasized that the payout will not materially affect the company's financial stability or ongoing dividend history, maintaining strong liquidity against market fluctuations.

T. Rowe Price Group reported preliminary assets under management of $1.59 trillion as of May 31, 2021. The firm experienced $0.5 billion in client transfers from mutual funds during May 2021, totaling $12.0 billion year-to-date. The breakdown of assets includes $705 billion in equity and blended assets, $145 billion in fixed income, and $376 billion in target date retirement products. The data reflects ongoing client reallocation strategies and strong performance in target date retirement offerings.

T. Rowe Price released its annual 401(k) benchmarking report, revealing key insights on participant behavior and plan design influenced by the pandemic. Highlights include a rise in average pretax deferral rates from 7.6% in 2019 to 7.8% in 2020, and a 13% increase in average account balances over the year. The adoption of Roth 401(k)s grew, with plans offering these options increasing from 60% to 80%. While some plans changed their designs, 46% reinstated original features early in 2021, reflecting a commitment to employee savings.

T. Rowe Price has introduced a new framework aimed at helping defined contribution (DC) plan sponsors evaluate retirement income solutions for participants. Research indicates that retirement income is a priority for plan sponsors, yet progress in implementing these solutions remains slow. The new framework is designed to assist sponsors in identifying suitable retirement income options tailored to participants' needs. T. Rowe Price emphasizes the importance of understanding retiree needs and suggests that a suite of income solutions is preferable over a single offering, a view supported by 94% of DC consultants.

T. Rowe Price Group (NASDAQ: TROW) announced a reduction in expenses for its target date mutual funds and trusts, effective July 1, 2021. The company has filed with the SEC to launch a new Retirement Blend Fund series, combining active and passive strategies. The average fee reduction across mutual funds is 6.3 basis points, enhancing investor value. This initiative aims to broaden the firm's target date solutions, positioning T. Rowe Price as a leader in retirement investing.

On May 21, 2021, T. Rowe Price's George Riedel praised the reintroduction of a bipartisan retirement savings bill by Senators Cardin and Portman. The bill aims to enhance retirement savings by encouraging automatic contribution plans, simplifying disclosures, and allowing older workers greater flexibility in saving. Riedel emphasized the importance of passing this legislation swiftly to benefit American savers, while noting discussions on balancing budgetary concerns with the interests of retirement savers. T. Rowe Price manages $1.59 trillion in assets as of April 30, 2021.