T. ROWE PRICE GROUP REPORTS PRELIMINARY MONTH-END ASSETS UNDER MANAGEMENT FOR DECEMBER 2024

Rhea-AI Summary

T. Rowe Price Group (NASDAQ-GS: TROW) reported preliminary assets under management of $1.61 trillion as of December 31, 2024. The company experienced net outflows of $10.9 billion for December 2024, $19.3 billion for Q4 2024, and $43.2 billion for the year. The quarterly flows include a previously disclosed subadvisory redemption and $0.8 billion of Manager-driven distributions.

Asset breakdown shows: Equity at $830 billion, Fixed income including money market at $188 billion, Multi-asset at $536 billion, and Alternatives at $53 billion. Target date retirement portfolios stood at $476 billion. The company will release Q4 2024 earnings on February 5, 2025.

Positive

• Total AUM increased year-over-year from $1.45T to $1.61T
• Growth across all asset classes compared to December 2023
• Target date retirement portfolios grew from $408B to $476B YoY

Negative

• Significant net outflows of $43.2B for the year
• Monthly net outflows of $10.9B in December 2024
• Quarterly net outflows of $19.3B in Q4 2024
• Monthly AUM declined from $1.67T to $1.61T between November and December 2024

Insights

Asset Management Analyst

T. Rowe Price's December 2024 AUM report reveals concerning trends in fund flows. The $10.9 billion in December outflows, contributing to $43.2 billion in annual outflows, signals persistent challenges in client retention. Despite total AUM reaching $1.61 trillion, the 11.2% year-over-year growth appears largely driven by market appreciation rather than organic growth.

The equity segment, at $830 billion, shows particular vulnerability with significant fluctuations. The substantial outflows, including a major subadvisory redemption, suggest institutional client dissatisfaction. Target date retirement portfolios, while growing to $476 billion, face increased competition from low-cost passive alternatives.

The fixed income segment's modest growth to $188 billion indicates success in diversifying revenue streams away from equity products. This concentrated exposure to equity markets increases business risk in potential market downturns.

Market Research Analyst

The accelerating pace of outflows - $10.9 billion in December alone - reflects broader industry challenges as active managers face intense fee pressure from passive investment vehicles. The quarterly outflow of $19.3 billion represents approximately 1.2% of starting AUM, a concerning erosion rate that could impact future revenue stability.

Multi-asset solutions, despite reaching $536 billion, showed vulnerability to market sentiment shifts. The alternatives segment's modest $53 billion AUM suggests success in expanding into higher-fee products. The concentration in traditional asset classes leaves TROW exposed to industry-wide fee compression and passive competition.

BALTIMORE, Jan. 13, 2025 /PRNewswire/ -- T. Rowe Price Group, Inc. (NASDAQ-GS: TROW), today reported preliminary month-end assets under management of $1.61 trillion as of December 31, 2024. Preliminary net outflows were $10.9 billion for December 2024, $19.3 billion for the quarter-ended December 31, 2024, and $43.2 billion for the year. Preliminary quarterly net flows include substantially all of the previously disclosed subadvisory redemption and $0.8 billion of Manager-driven distributions.

The below table shows the firm's assets under management as of December 31, 2024, and for the prior month-, quarter-, and year-end by asset class and in the firm's target date retirement portfolios.

		As of
		Preliminary(a)
(in billions)		12/31/2024		11/30/2024		9/30/2024		12/31/2023
Equity		$            830		$            859		$            832		$            744
Fixed income, including money market		188		187		186		170
Multi-asset		536		568		561		483
Alternatives		53		53		52		48
Total assets under management		$         1,607		$         1,667		$         1,631		$         1,445
Target date retirement portfolios		$            476		$            491		$            482		$            408
(a) Preliminary - subject to adjustment

Q4 2024 Earnings Release and Earnings Call

T. Rowe Price will release Q4 2024 earnings on Wednesday, February 5, 2025 at 7:00 AM ET. The company will host an earnings call from 8:00 – 8:45 AM ET that day. To access the webcast and accompanying materials, visit the company's investor relations website at: investors.troweprice.com 

About T. Rowe Price

Founded in 1937, T. Rowe Price (NASDAQ – GS: TROW) helps individuals and institutions around the world achieve their long-term investment goals. As a large global asset management company known for investment excellence, retirement leadership, and independent proprietary research, the firm is built on a culture of integrity that puts client interests first. Clients rely on the award-winning firm for its retirement expertise and active management of equity, fixed income, alternatives, and multi-asset investment capabilities. T. Rowe Price serves millions of clients globally and manages $1.61 trillion in assets under management as of December 31, 2024. About two-thirds of the assets under management are retirement-related. News and other updates can be found on Facebook, Instagram, LinkedIn, X, YouTube, and troweprice.com/newsroom.

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SOURCE T. Rowe Price Group

FAQ

What was T. Rowe Price's (TROW) total AUM as of December 2024?

T. Rowe Price's total assets under management were $1.61 trillion as of December 31, 2024.

How much were TROW's net outflows for the full year 2024?

T. Rowe Price experienced net outflows of $43.2 billion for the year 2024.

What was the breakdown of TROW's assets under management by category in December 2024?

As of December 31, 2024, TROW's AUM breakdown was: Equity $830B, Fixed income $188B, Multi-asset $536B, and Alternatives $53B.

How did TROW's target date retirement portfolios perform in 2024?

TROW's target date retirement portfolios grew from $408 billion in December 2023 to $476 billion in December 2024.

What were TROW's net outflows for Q4 2024?

T. Rowe Price reported net outflows of $19.3 billion for the quarter ended December 31, 2024.