The following is a summary of the T. Rowe Price Group, Inc. (TROW) Q2 2024 Earnings Call Transcript:

Financial Performance:

• T. Rowe Price reported adjusted earnings per share of $2.26, up nearly 12% from Q2 2023, driven by higher operating income and a lower effective tax rate.

• Q2 net inflows in fixed income, multi-asset, and alternatives were noted, with a large fixed income win from an insurance client.

• Q2 adjusted net revenues were $1.8 billion, an 8.5% increase from Q2 2023, driven by higher average AUM.

• Positive net flows from clients outside the US were observed.

Business Progress:

• The company highlighted strong performance in its retirement funds and two-thirds of T. Rowe Price funds beating their peer group one-year medians.

• ETF business reached $5.3 billion in assets under management, up from $1.2 billion in June 2023, with significant inflows this year.

• Introduction of new products like T. Rowe Price Intermediate Municipal Income ETF and launching investment strategies like OFLEX.

• Strategic partnerships were formed, including with one of the largest independent broker-dealers in the US.

Opportunities:

• Continued growth in ETF offerings is expected, especially with recent successful launches and plans for more diverse products.

• Growth in international markets is noted, with strong inflows from outside the US pointing to potential global market expansion opportunities.

Risks:

• Predominantly client-driven approach in retirement accounts might limit flexibility in offering competitive conditions compared to firms with more varied options.

• Fee rate compression observed, affected by the mix shift in assets under management, which might pressure revenue margins.

More details: T. Rowe Price IR

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