T. Rowe Price
T. Rowe Price Group, Inc. is an American global investment management firm founded in 1937 by Thomas Rowe Price Jr. and headquartered in Baltimore, Maryland.[1][2] The firm specializes in active management, providing a broad array of products and services including mutual funds, exchange-traded funds (ETFs), subadvisory services, separate account management, and retirement planning tools to individual investors, institutional clients, and financial intermediaries.[2] As of October 31, 2025, T. Rowe Price manages $1.79 trillion in assets under management, serving millions of clients worldwide with a focus on long-term financial success.[3] The company's investment philosophy emphasizes independent thinking, rigorous proprietary research, and disciplined risk management to identify opportunities and navigate market complexities.[4] Founded during the Great Depression, T. Rowe Price has maintained a commitment to integrity and client-centered strategies, evolving from its initial focus on portfolio management to a diversified global organization publicly traded on the NASDAQ under the ticker symbol TROW.[1][2] T. Rowe Price is recognized for its emphasis on diversification, fundamental analysis, and long-term investing, with strategies spanning equities, fixed income, multi-asset solutions, and alternatives.[4] The firm operates internationally, with significant presence in Europe, Asia-Pacific, and other regions, adapting its active approach to meet evolving client needs such as sustainable investing and target-date funds.[5]Overview
Founding and Early Development
T. Rowe Price Associates was founded in 1937 by Thomas Rowe Price Jr. in Baltimore, Maryland, as a small financial counseling firm dedicated to providing investment advice and wealth management services primarily to individual clients.[6] The firm operated on a research-driven approach, emphasizing thorough analysis over traditional commission-based brokerage, which set it apart during the Great Depression era.[6] Initially structured as a partnership, it began with a modest team including Price and four colleagues—Marie Walper, Isabella Craig, Walter Kidd, and Charles Schaeffer—working from limited office space in downtown Baltimore.[6] Thomas Rowe Price Jr., often regarded as the father of growth investing, brought a unique perspective shaped by his prior career experiences. Trained initially as an industrial chemist, he transitioned to finance in 1925, joining the Baltimore brokerage firm Mackubin, Goodrich & Co., where he rose to head of investment management by 1930.[6] His philosophy centered on long-term investment in high-quality growth stocks—companies with strong management, sustained earnings potential, and competitive advantages—rather than speculative or value-based plays prevalent at the time.[6] This approach stemmed from his frustrations at Mackubin, Goodrich & Co., where resistance to his growth-oriented ideas prompted his departure to establish his own firm.[6] In its early years, the firm maintained a lean operational setup, with irregular salaries for staff and financial support from Price's personal resources, including contributions from his wife.[6] The client base consisted of a handful of affluent individuals seeking personalized wealth management, with no institutional accounts until later developments.[6] By 1947, the partnership rebranded as T. Rowe Price & Associates, reflecting growing recognition of Price's name, and assets under management reached approximately $28 million by 1945, building toward a target of $60 million.[6] A pivotal milestone came in 1950, when the firm launched its first mutual fund, the T. Rowe Price Growth Stock Fund, a no-load vehicle designed to embody Price's principles and appeal to long-term investors, including through ties to the Uniform Gifts to Minors Act.[6] This launch marked the firm's transition to a corporate structure and its first profitable year.[6]Current Operations and Scale
T. Rowe Price Group, Inc. is headquartered in Baltimore, Maryland, where it maintains its global operations as a leading investment management firm. As of September 30, 2025, the company employs 7,830 associates worldwide, supporting its extensive activities in asset management and client services.[7] The firm manages $1.79 trillion in assets under management (AUM) as of October 31, 2025, reflecting a net increase from $1.77 trillion at the end of September 2025 and $1.73 trillion at the end of August 2025, driven by market appreciation despite ongoing client flows.[8] Preliminary net outflows totaled $2.0 billion for September 2025 and $7.9 billion for the third quarter ended September 30, 2025, primarily from U.S. equity products offset by inflows in fixed income and multi-asset solutions.[9] This scale underscores T. Rowe Price's position as one of the largest active investment managers, with a diversified portfolio spanning equity, fixed income, multi-asset, and alternative strategies. T. Rowe Price's core business lines focus on mutual funds, subadvisory services, and retirement plans, catering to a broad client base that includes individual investors, institutions, and financial intermediaries.[2] The firm emphasizes active management through fundamental research and disciplined investment processes to deliver long-term value across these channels. Since its initial public offering in 1986, T. Rowe Price Group, Inc. has operated as a publicly traded entity on the NASDAQ exchange under the ticker symbol TROW, enabling it to fund expansion while maintaining a client-centric structure.[10]Business Philosophy
Growth Investing Principles
Growth investing, as pioneered by Thomas Rowe Price Jr., entails selecting stocks of companies poised for sustained earnings expansion at rates exceeding the broader market and inflation, often accepting elevated valuations in pursuit of long-term capital appreciation rather than short-term income or dividends. This strategy, which Price developed during the Great Depression, contrasts with value investing by emphasizing future growth potential over current undervaluation.[11][12] At the core of Price's philosophy was the pursuit of "sound companies" featuring exceptional management, enduring competitive advantages, and innovative capabilities, such as strong research and development, to drive consistent earnings growth. He stressed investing in firms with visionary leadership that held significant equity stakes, fostering alignment with shareholder interests, while prioritizing sectors with minimal regulatory interference and stable employee relations to maintain profitability. Notably, Price advocated steering clear of cyclical industries vulnerable to economic downturns, instead favoring stable, non-cyclical businesses in emerging or specialty areas that demonstrate resilience across market cycles.[11][13] The approach relies on bottom-up stock selection, where individual company analysis through proprietary fundamental research uncovers opportunities overlooked by top-down macroeconomic views, often targeting smaller-cap firms before they gain widespread attention. Positions are held for extended periods—typically three to five years or longer—to capture compounding growth, with sales triggered only when earnings trajectories weaken or valuations become excessively stretched, such as through elevated price-to-earnings ratios.[11][13][14] T. Rowe Price distinguishes its growth investing from passive indexing by committing to active management, leveraging a team of experienced analysts to generate alpha through rigorous, company-specific insights rather than merely replicating market benchmarks. The firm maintains that this research-driven methodology, rooted in Price's original tenets, consistently delivers superior risk-adjusted returns over full market cycles.[13][14]Active Management and Client Focus
T. Rowe Price employs an active management approach centered on rigorous fundamental research conducted by in-house teams of over 200 analysts dedicated to equity and fixed income securities.[15] These analysts perform independent evaluations on several thousand securities annually, focusing on financial metrics, valuation, competitive positioning, and macroeconomic factors to identify long-term investment opportunities while managing risk. This process also incorporates environmental, social, and governance (ESG) factors as a core investment capability, embedding dedicated sustainability resources into research and decision-making to pursue better outcomes for clients and society.[16][17] This disciplined, bottom-up process enables portfolio managers to construct strategies that aim to outperform benchmarks through selective stock picking rather than passive indexing.[18] The firm's fee structure is primarily based on a percentage of assets under management (AUM), typically ranging from 0.40% to 0.60% for advisory services, with no performance-based fees to ensure alignment with clients' long-term objectives over short-term gains.[19] This straightforward model avoids incentives that could encourage excessive risk-taking and promotes stability, as fees remain consistent regardless of market volatility, fostering trust in the firm's commitment to sustained performance.[20] T. Rowe Price tailors its services to individual investors, retirement savers, and institutional clients, emphasizing education and transparency to empower informed decision-making.[21] Through resources like retirement planning tools, video series on financial wellness, and personalized advisory programs, the firm addresses diverse needs, such as building emergency savings or navigating Social Security benefits, while providing clear disclosures on investment processes and risks.[22] This client-centric focus extends to institutions via customized strategies and ongoing communication to support long-term goals like retirement security.[23] As a publicly traded yet significantly employee-owned entity since 1986, T. Rowe Price maintains independence from external pressures, allowing decisions to prioritize client interests without conflicts from short-term shareholder demands or affiliations.[24] This structure, combined with strict ethical guidelines, minimizes potential biases in research and portfolio management, reinforcing the firm's fiduciary duty.[25]History
1937–1986: Establishment and Growth
T. Rowe Price Associates was founded in 1937 by Thomas Rowe Price Jr. in Baltimore, Maryland, as an investment counseling firm providing advisory services to individual and institutional clients.[6] Initially operating as a partnership, the firm managed a small portfolio of separate accounts, emphasizing research-driven investment strategies focused on undervalued growth opportunities.[6] Assets under management started modestly at $2.3 million in 1938 and expanded to $42 million by 1949, reflecting steady client acquisition amid post-Depression recovery.[6] In 1947, the firm was renamed T. Rowe Price & Associates, solidifying its identity as a boutique advisory operation.[6] The firm's entry into the mutual fund industry came in 1950 with the launch of the T. Rowe Price Growth Stock Fund on April 11, marking its first pooled investment vehicle and a shift toward broader retail access.[6] Unlike many contemporaries that imposed sales loads, this no-load fund targeted long-term capital appreciation through investments in high-quality growth stocks, aligning with Price's philosophy of patient, fundamentals-based selection.[6] The fund's inception capitalized on the Uniform Gifts to Minors Act, appealing to families seeking tax-efficient vehicles for wealth transfer.[6] Throughout the 1950s and 1960s, T. Rowe Price expanded its advisory clientele and fund offerings, benefiting from postwar economic expansion and bull markets that rewarded growth-oriented strategies.[26] By 1970, assets under management had reached approximately $6 billion, driven by strong fund performance during periods of market optimism and the firm's reputation for rigorous analysis.[26] The 1970s saw further diversification, including the 1971 establishment of a fixed-income division and launches like the New Income Fund (1973) and Tax-Free Income Fund (1976), which quickly amassed significant assets—such as $215 million for the latter by 1978—amid rising interest in income-focused products.[6] In 1986, T. Rowe Price Associates went public through an initial public offering on the NASDAQ exchange under the ticker TROW, selling about 18% of its shares to raise capital for operational expansion and product development.[10] The IPO, which valued the firm at approximately $200 million based on 1985 revenues of $85.2 million, allowed the company to fund growth initiatives while maintaining control with existing management and associates holding the majority stake.[10] This transition from private partnership to public entity marked the culmination of nearly five decades of domestic establishment, positioning the firm for accelerated scale in the competitive asset management landscape.[27]1987–2010: Expansion and Internationalization
Following its initial public offering in 1986, T. Rowe Price experienced rapid asset growth, with assets under management surpassing $100 billion by 1996 amid the strong performance of the 1990s bull market.[26] By the end of 2000, total assets under management had reached approximately $114.5 billion, reflecting robust inflows into its equity and fixed-income products during this period of economic expansion. This growth solidified the firm's position as a leading active manager, with domestic mutual funds comprising the majority of its portfolio. A key milestone in internationalization came through the long-standing Rowe Price-Fleming International joint venture, established in 1979 with Robert Fleming Holdings to develop global equity funds for U.S. investors. By the mid-1990s, the venture managed over $17 billion in assets, focusing on international equities and enabling T. Rowe Price to offer diversified non-U.S. investment options.[6] In 2000, T. Rowe Price acquired the remaining 50% interest from Robert Fleming for $780 million, gaining full control and renaming it T. Rowe Price International, which further accelerated the firm's global equity capabilities.[28] During the 1990s, T. Rowe Price launched its retirement services division, emphasizing 401(k) plans and individual retirement accounts to capture the growing demand for workplace savings programs.[6] This initiative included the introduction of educational tools like the 1989 Retirement Planning Kit, which garnered over 1 million requests by 1994, and positioned the firm as a top provider in the 401(k) market by the mid-1990s.[6] The division's expansion supported broader product diversification, integrating target-date funds and advisory services tailored to retirement investors. International operations expanded with the opening of the firm's first wholly owned offices in the 2000s, building on earlier joint ventures. The London office, initially established via the 1979 partnership, transitioned to full ownership post-2000 acquisition, serving as a European hub.[29] In Asia, presence began with a Tokyo office in 1982, followed by significant growth by 2010, including a doubled headcount in Hong Kong and new operations in Taiwan to enhance regional investment research and client servicing.[30] These moves diversified revenue streams, with international assets comprising about 5% of total AUM by the early 2000s.[31]2011–Present: Modern Challenges and Partnerships
Following the recovery from the 2008 financial crisis, T. Rowe Price experienced substantial asset growth, expanding from approximately $419 billion in assets under management as of March 31, 2010, to $1.77 trillion by September 30, 2025.[32][2] This period marked a robust rebound, driven by favorable market conditions and the firm's emphasis on active management strategies that capitalized on post-crisis opportunities in equities and fixed income. In 2021, the company underwent a significant leadership transition, with Rob Sharps appointed as president and later succeeding William J. Stromberg as CEO effective January 1, 2022.[33][34] Sharps, previously head of investments and group chief investment officer, brought extensive experience in portfolio management to steer the firm through evolving market dynamics. The 2020s presented modern challenges for T. Rowe Price, including persistent net outflows amid the broader industry shift toward passive investing, which has captured over 50% of U.S. stock and bond mutual fund and ETF markets since the early 2010s.[35] In the third quarter of 2025 alone, the firm reported $7.9 billion in net outflows, reflecting client preferences for lower-cost index products during periods of market volatility.[36] To address these pressures and enhance its offerings, T. Rowe Price announced a strategic partnership with Goldman Sachs in September 2025, under which Goldman Sachs committed to investing up to $1 billion in TROW common stock through open-market purchases.[37] The collaboration focuses on developing innovative public-private investment solutions, particularly private market products tailored for retirement and wealth management channels, aiming to broaden access to alternative assets for individual investors.[38]Products and Services
Mutual Funds and ETFs
T. Rowe Price offers 307 mutual funds designed to provide investors with a range of options for long-term growth and income generation.[39] These funds span various asset classes, with a strong emphasis on active management to seek outperformance relative to benchmarks. Among them, the flagship Growth Stock Fund (PRGFX), launched in 1950, has a history of delivering strong returns by investing in high-quality, large-cap growth companies with sustainable competitive advantages.[40] For instance, the fund has achieved an average annual return of 15.00% over the past 10 years as of September 30, 2025, reflecting its focus on companies exhibiting above-average earnings growth.[41] The firm's mutual fund lineup includes categories such as growth, value, balanced, and sector-specific funds to address diverse investor needs. Growth funds target companies with high potential for capital appreciation, while value funds seek undervalued stocks with strong fundamentals for potential recovery and gains. Balanced funds, like the T. Rowe Price Balanced Fund (RPBAX), combine equities and fixed-income securities to pursue capital growth, current income, and principal preservation, typically allocating about 65% to stocks and 35% to bonds.[42] Sector-specific offerings include the Health Sciences Fund, which invests in biotechnology, pharmaceuticals, and healthcare services, and the Blue Chip Growth Fund, focusing on established large-cap leaders in technology and consumer sectors.[43] In the 2020s, T. Rowe Price expanded into exchange-traded funds (ETFs) to complement its mutual fund offerings, launching its first active ETFs in August 2020. By 2025, the firm managed 24 actively managed ETFs, including U.S. Equity ETFs like the T. Rowe Price Blue Chip Growth ETF (TCHP) and International Equity ETFs such as the T. Rowe Price Global Growth Stock ETF (TGGG), which apply the same research-driven approach as the mutual funds but with intraday trading flexibility, with over $20 billion in assets under management as of November 2025.[44][45] These ETFs aim to outperform passive benchmarks by leveraging proprietary stock selection and portfolio construction. T. Rowe Price mutual funds and ETFs have demonstrated a pattern of historical outperformance against benchmarks like the S&P 500, particularly in both rising and falling markets. For example, the firm's U.S. equity funds have collectively outperformed the S&P 500 in over 67% of 5-year rolling up-market periods and over 90% of down-market periods from 1995 to 2024, attributing this to rigorous fundamental analysis and risk management.[46] This track record underscores the firm's commitment to delivering consistent, risk-adjusted returns across market cycles.[47]Retirement Plans and Advisory Services
T. Rowe Price provides comprehensive retirement plan services, including administration and investment management for defined contribution plans such as 401(k)s, 403(b)s, and individual retirement accounts (IRAs).[48] The firm serves more than 2 million active workplace retirement plan participants across thousands of plans, offering tools for participant education, enrollment, and ongoing engagement to support long-term savings goals.[49] These services emphasize adaptability and expertise, enabling plan sponsors to customize offerings while ensuring compliance and efficient recordkeeping.[50] In advisory services, T. Rowe Price delivers personalized financial planning through its Retirement Advisory Service, which combines nondiscretionary advice with discretionary portfolio management to align investments with individual retirement objectives.[51] For individual investors, the firm offers target-date funds that automatically adjust asset allocations based on retirement timelines, providing a diversified mix built on underlying mutual funds for growth and income.[52] Additionally, robo-advisory options like the ActivePlus Portfolios use automated strategies to construct and manage low-cost, tax-efficient portfolios tailored to risk tolerance and goals.[53] T. Rowe Price also fulfills subadvisory roles for institutions and financial intermediaries, managing customized portfolios and target-date solutions within their platforms.[54] These arrangements encompass separate accounts that allow for bespoke investment strategies, supporting a broad range of client needs from endowments to retirement platforms.[24] Since the 2010s, T. Rowe Price has integrated environmental, social, and governance (ESG) factors into its retirement offerings, incorporating ESG analysis into the fundamental research process for target-date funds and advisory portfolios to enhance long-term risk-adjusted returns.[55] This approach, formalized through dedicated stewardship teams and annual reporting, ensures that sustainability considerations inform asset allocation without compromising the firm's active management philosophy.[56]Global Presence
International Offices and Expansion
T. Rowe Price began its international expansion in the late 1970s, marking a shift from its U.S.-centric operations to a global footprint. The firm's inaugural overseas office opened in London in 1979 through a partnership with Robert Fleming Holdings, establishing a base for European client services and investment research. This move laid the foundation for broader globalization, with subsequent openings in Asia including the Tokyo office in 1982 to support portfolio management for Japanese markets and the Hong Kong office in 1987 as a hub for Asia ex-Japan activities.[29][57][29] The 1990s and early 2000s saw accelerated growth in Europe and Asia-Pacific, driven by increasing demand for active management in international equities and fixed income. Key additions included representative offices in Singapore and Sydney to tap into Southeast Asian and Australian markets, alongside European expansions such as Amsterdam in 2004, Luxembourg in 2005 for fund domiciliation, and Zurich in 2008 to serve Swiss institutional clients. By the 2010s, the firm extended into the Middle East with a Dubai office in 2011, focusing on regional wealth management and sovereign funds, added a Toronto office in Canada in 2007 to address North American international needs, and opened an investment research office in Shanghai in 2021. This timeline reflects a strategic progression from European entry in the 1970s to deeper penetration in Asia-Pacific and the Middle East by the 2020s.[58][59][60] As of 2025, T. Rowe Price operates 17 international offices, supporting its global investment strategies with localized expertise. These include established hubs in London, Hong Kong, Tokyo, Dubai, Singapore, Sydney, Toronto, Frankfurt, Madrid, Milan, Luxembourg, Amsterdam, Stockholm, and Zurich, among others, enabling direct engagement with regional regulators and clients. The firm employs approximately 8,000 associates worldwide, facilitating cross-border research and operations. To ensure compliance with diverse regulatory environments, T. Rowe Price has implemented adaptations such as EU MiFID II requirements, including unbundling research costs from trading commissions since 2018 and annual execution quality reporting to promote transparency in trade execution.[61][62][63]Key Markets and Regulatory Adaptations
T. Rowe Price serves major international markets primarily in Europe, Asia-Pacific (APAC), and emerging regions such as Latin America, where it manages assets for clients seeking exposure to global opportunities beyond the U.S.[24] As of September 30, 2025, the firm's international assets under management (AUM) from non-U.S. clients totaled approximately $153.7 billion, representing 8.7% of its overall $1.77 trillion AUM, with these assets distributed across APAC, Europe, Middle East and Africa (EMEA), and Canada.[64] This international segment supports diversified client portfolios amid varying economic conditions, including positive returns in Latin American markets during the third quarter of 2025.[64] To navigate local regulations, T. Rowe Price adapts its offerings to comply with jurisdiction-specific requirements across more than 50 countries. In Europe, the firm provides UCITS-compliant funds through Luxembourg-based SICAV structures, which are consolidated as variable interest entities when the company holds primary beneficiary status, ensuring alignment with EU directives like the General Data Protection Regulation (GDPR) and sustainable finance rules.[24] In Asia, particularly Hong Kong, T. Rowe Price Hong Kong Limited operates under licensing from the Securities and Futures Commission (SFC), facilitating access to regional equity and credit strategies.[65] These adaptations mitigate risks such as currency repatriation challenges and support seamless operations in diverse regulatory environments.[24] The firm employs targeted strategies to address regional economic volatilities and client preferences. In Asia, where currency fluctuations contribute to market instability, T. Rowe Price utilizes currency-hedged investment options to reduce volatility while preserving yield potential, particularly in emerging market bonds and equity funds focused on Asia ex-Japan opportunities.[66] In Europe, there is a strong emphasis on sustainable investing, integrating environmental, social, and governance (ESG) factors into portfolios to meet EU Sustainable Finance Disclosure Regulation requirements and capitalize on demand for green and impact-oriented assets.[67] These approaches enable the firm to deliver resilient, region-tailored solutions amid global transitions like policy shifts and climate-focused reforms.[56]Branding and Sponsorships
Corporate Identity and Logo
T. Rowe Price adopted the bighorn sheep as its corporate logo in 1983, marking a pivotal moment in establishing a unified brand identity. In 2024, the firm introduced a sleeker, modern design for the symbol as part of its "The Power of Curiosity" global branding program.[68] Affectionately known within the firm as "Trusty," the logo depicts a stylized bighorn sheep, symbolizing sure-footed agility, sharp vision, and the ability to navigate challenging terrain with purpose and independence—qualities that mirror the firm's investment philosophy of resilience and steadfastness in volatile markets.[69][68] The firm's color scheme centers on shades of blue and white, which have been integral to its visual identity since the logo's introduction. Blue conveys professionalism and reliability, while white emphasizes clarity and transparency, aligning with T. Rowe Price's commitment to straightforward financial communications for investors. These colors appear prominently across branding materials, reinforcing a sense of trust in an industry often marked by complexity.[70] T. Rowe Price's tagline has evolved to reflect its client-focused mission, transitioning from the longstanding "Invest With Confidence"—a trademarked phrase emphasizing assured decision-making—to a current emphasis on "Helping Investors Thrive" in an evolving world. This shift underscores the firm's dynamic approach to long-term success amid changing market conditions.[1][71] Since the 1980s, the bighorn sheep logo and associated branding elements have been consistently integrated into marketing materials, including annual reports and client portals, ensuring a cohesive visual presence that supports the firm's reputation for reliability. For instance, the logo features in financial disclosures and digital interfaces, maintaining brand continuity across print and online platforms.[69]Sponsorship Initiatives
T. Rowe Price entered into a multi-year sponsorship agreement with the Baltimore Orioles in June 2024, becoming the team's first-ever jersey patch partner in Major League Baseball history.[72] The deal features a T. Rowe Price-branded patch on the sleeves of Orioles players' uniforms for all regular-season and postseason games, alongside prominent signage above the Camden Yards scoreboard and designation as the exclusive investment and wealth management sponsor.[73] This partnership builds on T. Rowe Price's longstanding ties to Baltimore, aiming to enhance local community engagement while boosting national brand visibility through MLB exposure.[74] Prior to the Orioles deal, T. Rowe Price maintained several sports sponsorships focused on regional and youth development. The firm has sponsored the Baltimore Ravens since 2013, expanding the partnership in May 2025 to include presenting sponsorship of the team's new Champions Club and Legends Suites premium areas, along with stadium branding and community outreach programs.[75] In youth sports, T. Rowe Price became the title sponsor of the Orioles' Inner City Baseball Program in 2019, a longstanding initiative that promotes life lessons, teamwork, and physical activity among Baltimore city youth through baseball clinics and camps.[76] Additionally, the company served as the title sponsor for the Atlantic Coast Conference (ACC) Men's Basketball Tournament in 2025 and holds an ongoing partnership with The Boat Race, the annual Oxford-Cambridge rowing competition in the UK.[77][78] Complementing these efforts, T. Rowe Price supports Baltimore-based philanthropy through the T. Rowe Price Foundation, which in 2019 committed $2.7 million over four years to local education, arts, culture, and human services initiatives.[79] In June 2025, the foundation announced an additional $1.25 million to bolster youth and family programs, including athletics, education, and social services in underserved Baltimore communities.[80] Key education programs tie into financial literacy, such as the Money Confident Kids initiative, which provides free tools for parents and educators to teach children about saving, spending, and investing.[81] The firm also partnered with Morgan State University in 2022 to expand financial education resources, including workshops and resources for students on wealth management and retirement planning.[82] These efforts extend to the T. Rowe Price Finance Lab at Towson University, offering community workshops on budgeting, debt management, and investing for elementary through college audiences.[83] The sponsorship initiatives align with T. Rowe Price's strategic objectives of strengthening hometown connections in Baltimore and elevating national recognition via high-profile affiliations like MLB.[72] Company executives have stated that these partnerships form part of a broader global brand strategy to attract new clients by associating the firm with trusted community institutions and active lifestyle themes.[84]Financial Performance
Revenue, Profits, and Assets Under Management
T. Rowe Price Group, Inc. reported net revenues of $7.09 billion for the full year 2024, marking a 9.8% increase from $6.46 billion in 2023, driven primarily by higher assets under management and favorable market performance.[24] Net income attributable to the company rose to $2.10 billion, up from prior years, reflecting improved operational efficiency.[24] The operating margin expanded to 32.9%, calculated as operating income of $2.33 billion divided by net revenues, underscoring the firm's ability to control costs amid revenue growth.[24] Revenue is predominantly derived from investment advisory fees, which totaled $6.40 billion in 2024 and accounted for approximately 90% of net revenues, with key contributions from equity ($3.86 billion), multi-asset ($1.81 billion), fixed income ($0.41 billion), and alternatives ($0.31 billion) segments.[24] Administrative, distribution, and servicing fees contributed $0.59 billion, representing about 8% of total revenues and largely stemming from retirement plans and other client services.[24] Performance-based fees added $0.06 billion, while capital allocation-based income provided $0.05 billion.[24] Operating expenses for 2024 reached $4.76 billion, a 6.4% increase from 2023, with compensation and benefits forming the largest component at $2.60 billion, primarily supporting the firm's extensive research staff and investment professionals.[24] Technology, occupancy, and facility costs amounted to $0.64 billion, including $0.18 billion capitalized for software development and other technology initiatives aimed at enhancing investment platforms and client services.[24] Assets under management (AUM) at T. Rowe Price have shown steady long-term expansion, growing from $199.4 billion at the end of 2010 to $1.61 trillion by December 31, 2024, reflecting a compound annual growth rate of approximately 14% over that period.[85][24] In 2025, AUM continued to rise, reaching a preliminary $1.73 trillion as of August 31, up from $1.61 trillion at year-end 2024, supported by market appreciation despite ongoing net outflows.[86] The third quarter of 2025 saw net client outflows of $7.9 billion, leading to quarter-end AUM of $1.77 trillion as of September 30.[7] Preliminary AUM reached $1.79 trillion as of October 31, 2025.[3] For the third quarter of 2025, ended September 30, net revenues were $1.9 billion, a 6.0% increase from the prior-year quarter, while net income attributable to T. Rowe Price was $0.54 billion.[7]| Key Financial Metric | 2024 Value (in billions) | Year-over-Year Change |
|---|---|---|
| Net Revenues | $7.09 | +9.8% |
| Net Income | $2.10 | +17% (approx.) |
| Operating Margin | 32.9% | +5.9 percentage points |
| AUM (Dec 31) | $1.61 | +11.2% |