TROW - Earnings call 3 2023 | T. Rowe Price Group, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Norma, and I'll be your conference facilitator today. Welcome to T. Rowe Price's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder this call is being recorded and will be available for replay on T. after concludes. shortly website Price's the call Rowe I Carruth, T. turn the to Linsley call over will now Rowe of Price's Director Investor Relations. Please go ahead.

Linsley Carruth

Hello, today for will last The for IR website joining quarter on XX Today's be you supplemental call. call investors.troweprice.com. can and press and earnings release minutes. our document found approximately at our thank third materials us

ask Our discuss then for We results minutes, and you the we'll your CEO it that about and to President, Rob to per Sharps and it company's CFO, Jen Dardis, up open X will limit participant. XX questions. question

also Associates Rob Eric Equity portion We and have of with call. Veiel, the T. question-and-answers Price here the of Head Rowe Jen for today Global

peer and number that are press reconciliations the investment reference performance call, remind in in the GAAP and to to of our on supplemental Please to certain non-GAAP materials you like financial as I'd groups. to language XX-Q. during and All forward-looking Morningstar statement well of peer the measures. groups forward-looking statements as today's make release the course references a using refer this call we may

Now I'll to it turn over Rob.

Robert Sharps

and Thank joining today. of to you thanks us for all you, Linsley,

similar year. largely expect flows largest solid don't At time, year. we were same and we savings for haven't trends of in the initiatives improvement made what progress the we efforts. We planned any in on and franchises. net quarter cost Third executed the seen particularly strong earlier strategic Relative experienced was performance our investment to and in on our the to balance

of products, come of and realize performance as recover to large off the somewhat investments. cap takes impact equity That XXXX investors said, we trends U.S. flow the strategic the off pressure from do improved sidelines, our we redemptions expect in

Turning investment performance. now to

concerned equity interest and fell period a investors quarter third as most in grew know, higher rates. markets income the about fixed increasingly prolonged you As of

to peers, performance particularly quarter and we our During U.S. equity of strategies. in posted multi-asset markets, solid of another these many relative investment choppy

of equity medians. of the quartile products above U.S. XX% group each outperforming the more top our the funds performance benchmarks than the products median X year-to-date for their mutual Our large-cap time and growth have quarter were their were peer resilient beat and in period. with All

performers multiyear strong U.S. all versus in Cap had top U.S. technology, adding included all and our Cap track opportunities science Other Core peers range equity records. quarter, their for which solid performance to quartile the Large and

the solid products continued relative peer long-term quarter. some results International to ground equity have during despite losing

June full U.S. beating X launched in since off and in active benchmarks the active start got our quarter equity strong new X ETFs launching. all We ETFs a first to their with

outperformance Our the periods. X- peers capital fund X-, to peers decile and deliver relative X-, continues appreciation top in the versus to in time XX-year and is consistent

Our to long-term security and strong target portfolio driven peers, track versus of products in adding differentiated quartile added funds date quarter, the selection construction. another largely by the top were their our vintages retirement flagship record. strong active All

funds outperforming both and the mutual peer credit in target the the to income date top dynamic were Fixed list quarter. their Income was our our added blocks Bond which our Global which performers over fund, XX% meetings. with was High group solid recently of decile Fund, were building performance Topping bond of

private strategies during credit OHA performance Alternative strategies market results liquid outperformed with well. generated solid the absolute in their benchmarks as strategies. quarter strong and relative

outset, to the by encouraged we investment I in our outflows. at net as I'm mentioned see continue improvements While performance,

for the same, a cap with and net The flows equity quarter the trends negative $XX.X were of levels. large largely accounting billion class majority asset outflows. consistent Third with recent U.S. remain

weakness further quarter we fourth than and worse expect concentrated flows recent with be December. trends ahead, in to Looking November

the over mandates. weak particularly terminations been has handful December large redemptions, years, a those last that and to of reflects and sub-advisory related notified few considers including forecast Our

to cost continued to and investment talk these strategic expenses priorities. about create in to a continue a our for I'd in firm for our few quarter. proactively structure and Jen But appropriate of today manage accomplishments the the will allow We first, like the size expense highlight more a to of efforts moment. scale during

or T. offering with Fund, non-traded first life our as launched development a BDC offered to We OHA Price joint Private business Rowe investment OHA, Credit the company perpetual select structure.

from of X on investments the it and durable repeatable building channel. industry's deliver launches. with to BDC institutional addition $XXX to wealth raised over a million a to investable billion million in Price $XXX process commitments. focused are nontraded T. This of group largest alternative facility making the credit We investors capital, in in commitments includes launched Rowe global $X.X management in equity OCREDIT of

expanding totaling Our XX. of September ETF billion franchise as is with AUM $X.X

$XXX XX appreciation with placement capital net new June million Our over has strong and equity, interest TCAP broker-dealer in flows ETF, with attracted since in launching or clients.

our designed that It's investment our our hard and of the headquarters and In associates a and new foster moved in progress an Maryland, with Baltimore, culture. growth. path signing. associates return to and Warwick exterior in Point on Oster Both dedication associate at collaboration, office our to Court the been driving the Harbor we in quarter, culture third of Square, are construction organic the experience in end firm beam our marked Pattern of our the to of to on are work London our a offices new have ceremonial cornerstone global

and of and collaboration clients keeping financial long-term delivering all We results this through our have some focused industry, grateful talent culture center investment carefully our and of to and I'm consistently the at in clients, environment. the strong for excellence we for of the sustaining best on our performance service managing our teams world-class squarely do. we're our

our I'll now the for to financial to quarter. Jen turn results cover

Jen Dardis

questions. line Thank you, the we review and financial then and for Rob, our I'll hello, open everyone. results, will

QX. of higher up end-of-period revenues and income. trillion, for XXXX, advisory advisory investment interest-related down by QX per carried following a decline Our XXXX, markets $X.XX the QX end in of of higher share AUM at from $X.X was July, driven higher QX AUM earnings in led A adjusted higher of But QX was peak driving revenues QX average XXXX, $X.XX QX this quarter. than than X.X% the from higher to and investment X.X% X.X% trillion our $X.XX

As our Rob in growth with U.S. our and our well. $XX.X net in for majority quarter, equity quarter, the net outflows. the outflows termination business equity sub-advisory large-cap mentioned, positive in strategies last of mandate multi-asset inflows alternative a drove previously we X flows Consistent had Pacific disclosed with for as billion income including August. products the were posted partially classes, offset and quarter fixed Outflows Asia from asset the

were have seasonality inflows the to billion. new DC for with in seen year-to-date Within When $X.X plan-driven multi-asset, December in billion channel $XX.X onboarding quarter, mind, January. thinking about some plans the we target keep inflows ones year, net bringing in the historically and rest date some of in the departing

strategies and expect strategies reopened Other long-term net blended performance inflows to solid capital small-cap the appreciation, which new highlights quarter track we high-yield will records. we emerging bond and international In from all into September, included Both equity, have bond. our international cap core market future equity our sales. clients, support opportunities equity

nearly billion, revenue. to in billion $X.X including investment over Turning advisory $X.X income the revenues net statement, were QX adjusted

in vehicles. QX down fee alternatives along fee XX.X% by The QX. with points QX, effective rate rate primarily basis annualized of was realized driven the decrease Our XXXX, from certain that in were timing and lower in earnings fee products and classes fee XX.X shift towards on is effective asset mix performance-based equity

QX absolute quarter-to-quarter, This continue adjusted included was performance paying revenue net alternative interest-related $XX a previous carried over relative revenues strong interest million in products. line with those carried products and reflecting vary and higher relative level structures. to with than will returns quarters, related in accrued in this and also carried likely revenue, interest absolute the widely of in

higher Our expense, both severance XXXX. adjusted by XXXX interest-related related G&A. over operating benefit and QX nonrecurring offset were in QX force and billion, little July The carried up expenses QX our from $X.X partially X% to in included reduction costs nearly a a

our expense to expenses related for timing forward compensation XXXX higher growth, For full expect year comparable of several billion. excluding a interest carried of in X% do not we or adjusted interest just operating categories the over guidance $X.X fully carried XXXX. expense, under full into the compensation X% amount year-to-date, narrowing XXXX, to few nearly excluding we year X% With related are QX, are operating be seasonal in range of adjusted so which carry will

date grant in to in promotion in is from support expect typical G&A higher have is in QX QX QX. QX be we professional to spend campaigns. typically compensation Specifically, as higher highest run higher rate Advertising December. typically than our seasonal also that as spilled annual over fee Stock-based and we falls

realize of quarter And higher a facilities occupancy location. finally, full will technology, new related our costs to London we and

As expense have our continue growth. result us will invest to in on that efficiency last and we we managing strategic quarter, in been the to growth we believe focused mentioned to allow driving future initiatives

reviewing As part estate the hybrid of real have costs. and collaboration usage our our dual of of with this effort working goals reducing real in-person and environment, estate enhancing we in been light

occupied from office to a X this Colorado our in at change or in reduce year-end. amount in review, associates configuration, change Springs workforce and a by into a decision of our strategy. campus consolidate Owings not the made the to This space As we Maryland result of down Mills, buildings buildings location X is

our business, going to support have foundational strategic We focused we have drive and the to and on been technology underpin forward. ensure architecture also enhancing our data efficiency initiatives

operating over $XXX run months our expenses the last As XXXX. reallocated shared quarter, million in XX we for efforts have last removed or the versus rate savings over cost

to grow rate always, based depend low expense growth on and on interest This operating fall We rise expenses, levels. as current operating we XXXX And choose adjust will compensation if estimated XXXX growth expect or is adjusted single-digit rate will it excluding in significantly. levels, may adjusted this carried range. markets final to market continue the

third on we $XXX million. a over over of for million Spending under in management. capital average $XXX about just repurchased shares the a million. of X.X a an shares moment Year-to-date, for $XXX little at price We repurchased quarter total XXX,XXX have

XX, September outstanding. XXX.X million had of As shares we

$XXX liquidity million have about maintaining buybacks stockholders and recurring remains through and support to share while M&A. year-to-date, top program, capital ample opportunistic Our dividend to our potential we a seed buybacks priority returned dividends

in complete drive we invest will pursue year for and performance and to client to XXXX, continue the over and growth we As time. to our strategic service priorities plan investment excellent

and low single-digit We plans costs initiatives our maintain are also to XXXX. expense to reduce fund into on executing a these growth

XXXX. the challenged start are the that quarter, fourth remain of through efforts will see we confident will to flows in benefits While these we

ask for to line I'll operator that, open the With the questions.

Operator

[Operator Alexander Instructions] Sachs. from Blostein comes with of line question Goldman Our the first

Alexander Blostein

on So earlier of needle? Rob, maybe spend as you I'm made in starting the around the Jen XXXX. key will into some and you expect strategy. strategies alluded you flows credit not initiatives just confidence the ETFs well last Can sure and the minute improvement maybe on a that point, contribute and start or 'XX private that to move it's flows to to if to

better you help the So to next see year? for anything us can that you opportunities frame

Robert Sharps

have thank question. remarks you did December is expect particular, prepared to that note outflows. in mandate. for by in And elevated a large single Alex, November, impacted November Yes, the I Look, the and we

years. seen be of what with we've December should December for consistent couple the in But last

a that do I in flows outflows the think lower I why that that year? can a challenging to that more respond And what performance. would in year-over-year say changes it's we're improvement thing next to number areas. a are in is you particular, ask I'd first channels industry given already say would to channels, backdrop. is little some that improvement, specific despite So of certain I seeing be pretty to And That quickly we logical as that's tend should characterize weakness, In -- confident point

year-over-year. just Right? of the and had inflows gross date under up $X If We you billion just in look retirement at QX. in XX% sales trends -- funds

and in flows alternatives. multi-asset positive fixed have income, We broadly

sales. in small still You quarter our mentioned ETFs. for We It's ETF had best building.

performance can or it don't be I think I flows. a improvement the contributor think it driver in of in most be but of XXXX, will meaningful

broadly. sidelines driver I on flows time I or the horizon most of perspective the think equities have their industry One, the and you an the appetite, meaningful money risk be some if extends think more in from will

be I in U.S. Two, of for the would passive. think a performance helpful active market broadening relative to equity

the Three, as kind performance they you begin impact flows. will to ultimately, of flow longer-term numbers through really

X being different of strategic a on. them. of working number we're highlighted initiatives we've four, that And Alternatives

a So I driver I of the necessarily in say contribute either will be we of next do think or that wouldn't OCredit organization, ETF year. flows. think OCredit scale that will But our improved overall predominant

they'll be in regard channels classes to the the to really kind picture with improvement in But we're be a think have I see core going have flows asset to of additive. better XXXX. than to 'XX core and

Operator

comes question the Siegenthaler of America. Bank from next Our of Craig with line

Craig Siegenthaler

Eric, Rob. Hope well. doing is everyone

flow We flagship of equation. to September. June side this translate funds, XX mid-cap Most more focusing month-over-month looking generated into question, have key months. on flows of last the improvement growth, actually but performance in a the the over you're equity they question another stock and from at blue-chip seeing gross And and redemption your very the strong we're on

institutional XX-month if year-end, that large sub-advisory XXXX? improvement numbers? So can't why my is, lead strip net at to expecting how the flow continued impacting this monthly into question redemptions better this discussions, you're the out you And is client

Robert Sharps

Nice would things Craig. good strategies. to and morning. a Sure, couple hear say these it as your voice, relates to I of

of from and encouraged because with of we're performance research improved the strong underlying First encouraged it's our the all, platform. period year-to-date come and we're support performance broadly come it's over definitely the really by

analyst our But do. portfolio a to a clients. of had depending and conversations strong we support client lot managed really type vary to performance, key year is which Our the continues upon what overall

X, respond as geography As channel, quickly every that know, to What to channels we're to see the strategies. basically are you we're you we numbers. as tend performance, starting continue more channels discussed, to these with because those we on more we X. it get world those relates better some But focused the those in flows, seeing every around over we And X performance that the more those the time do X to and we have continued and deliver and better to delivered that. year-to-date, X see as periods will are eventually

far recognize those X- So in from X-year have years complacent to we're be. them many it term, the about where encouraged to quarters and short get still we more and we we performance strong to but are of that and want deliver numbers

Operator

comes the question Patrick next with of from line Autonomous. Davitt Our

Patrick Davitt

the announced months. that over chunky of sub-advisory been mentioned last a few of losses have the kind You couple

a So base particular exposed regular could frame AUM risk trend? more and the issue that is more the you frame broadly specifically to this becoming that

Robert Sharps

is Jenn business Look, then or add I'll can any start and perspective. sub-advisory Eric our broad.

wealth channel we pressure. to business. We have The meaningful over annuity sub-advisory sub-advisory have opportunities variable a in business the is sub-advisory and annuity variable time likely more be under

consolidating well that sizing channel to. terms of it's our of channel it, performance. that in of as less which in very, XX% brand. is service overall excellent of us business really we perhaps very In well sub-advisory additional channel, in but channel. We it's dependent it our that for term, outside much market Overall, a are some good some do think We a business opportunity than over but for on the and as the a meaningful, wealth see good book. we opportunity committed very don't performance that a long that values We VA is kind values there'll be is sub-advisory, anticipate growth particularly think share,

Yes. I VA something regard the of a period we've with channel, time. in would quickly VA the long note navigated very to that the for challenges channel,

of year. this in But It book particular quarter. period the new elevated some part relatively over So or a or navigated a a particular month that a may the that's to time. outflows we've pressure that's something of specific not be long it's

Operator

comes from Bedell Deutsche question with line of Brian Our the next Bank.

Brian Bedell

the any can changes for But major the have that's you've particularly and something year, know you ESG, changing if is incorporate investment against years, to been that's you that comment backlash I good Maybe risks? ESG to on political been several given has distribution -- there. you on know performance. just demand the there partners how what inclusion how improved I demand the on -- stakes the been see process, products process. one this hearing the it any institutional always the change you in are within in seeing Particularly, Europe? been of for Europe, from either -- or investment was investment you into incorporate process? table And similarly, it then Are in ESG in terms that working

Robert Sharps

incorporate political decision-making Yes. our we we into Look, long-term Brian, consistently near-term issues good affect don't investment very and ESG question. or process let it.

our does portfolio team. Our identify that the using process investment and helps is fundamental specifically much And RI and decision-making managers analysts incorporating ESG into very across team that on and based by analysts strategy be income could using insights long-term by opportunities understand responsible then process. our company's our affected the our of investing -- parts generated fixed changes using team materially it our our risks what the

is leads short-term So clients outcomes better not and in our all to for us environments. it wins, it affected by political

of defined XXXX demand, the across broadly channels geographically. still terms In the ESG set grew in

and at their competitor done North exclude If even very was by set. that X you you reallocation within look large retirement America, firm EMEA, a if APAC

opportunity and to want still there's we they meet So think here be. work with where that commercial clients them to we

have we've capabilities years. about income feel do the that over good the that we across that really equities. to We fixed many And built -- capability and

Operator

for moment our next One please. question,

question JPMorgan. Ken Worthington line next with comes from Our of the

Kenneth Worthington

of path different that the a with there forward have successful T. like taking the questions seeing mass is in ETF is something dedicating your you're Maybe or been pretty resources question what relatively you to and goals? and approach recent then offerings. Rowe And distribution fundamentally others launches. in you're the bigger active industry? offering your assets equity ETFs One, you're marketing critical at here? active about the versus your into here. you today have particularly success for talk where JPMorgan seem a A new You with is second, picture active can couple in see certain significant managers Do in ETF similar how

Eric Veiel

then want or think, may one. approached thoughtful very to come way in I'll as market a has this The Eric. this Ken, we've is I Jen been, start, Rob and well.

were ETFs, started income this know, and for. we're fully you X active we equity fixed transparent X then known which clones ETFs. then transparent As launched ETFs fully X active we semitransparent strategies first with added that year existing of well

especially that Our improved approach we channels where uptake to for that ETF the these offers, target to there's structure the taxable the marketing most accounts. is think the for

So RIA as now that, wealth the channel. to that our on starting across well we're the some as the channels U.S. XX-month broker-dealers would And records get track different suite. as larger ideally within to be gain traction we this

the the capital of Drew, David In some this campaigns marketing with backed targeted manager, with dedicated portfolio because the the We've are case TCAP, specific known. able strategy as We've quite strategy. well placements been appreciation accelerate well. and function sales also of and to some that

we'll other how versus that I'm approach So taking. business about us, feel I'm term, very reason about on competitors. specific next, large we'll prospects approach the to taking, and and for why years. we we're the can't that bullish it, to important do long-term think going comfortable X and I this a call be comment we're meaningfully. And long our I good over grow not X-plus think no here. I'm with the very There's

Robert Sharps

that our ETFs vehicle use and that do our of of big address traits will We multi-asset would ETF do regional a -- investment think term, and I over given active specialists engage be components our of add do ETF that our advisory broker-dealer investment do to opportunity in clients. some the and clients teams the for with I there's ETFs unique opportunities given home wealth support our longer some those a offices quickly, more us think channel. capabilities with models. in we just consultants deliver models big as regard the And evaluating that opportunity think there's We we have for to underlying can where there needs time to the capabilities have.

but some we're progress, got So we've do I to I'm think making more encouraged do much that I here. think

Jen Dardis

add. also I'd

in we have. talk ESG and those and they whereever ETFs sense about have a where being with we suite about meeting we think how that to as Eric the the talked are capabilities thematically, another be where conversations lineups develop, similar with needs clients can we able their gaps clients can we and with about have their given the capability of are, can already they meet in I point can products it's

Operator

One moment for our next please. question,

next question Brennan the Hawken comes Our line of from with UBS.

Brennan Hawken

spoke to you some in a was I uplift XQ hoping expenses.

helpful seasonal the growth would and that it's said if shouldn't maybe you also expense carry, in versus can So that carry XXXX. exit it it X% be you year-to-date size

it seasonal So your just 'XX into a quarter just carry hoping XQ that 'XX? from of you in were expect to clarify, items because are won't uplift efforts? saying of you you Or similar the saying first don't expense that

Jen Dardis

Sure.

then overall an would seasonal go give similar seasonal what But into over to fourth would fill things some to And the a are QX, that expect the comment fourth in quarter fourth this into and items, you year to the that onetime QX first are about to the more certainly quarters. with in full that's you quarter against X% we from the So to nature. the tried in we be it for give range QX, next year perspective, made carrying in be X wouldn't what would the seasonal quarter number. X% some regard actuals the for through are year, and sense

of was increase operating do professional the vesting plans. terms item all, we Just recognized mentioned a to other prior was we and would recovery That's grants. it, recur. would $XX more the stock-based This not we then split are when compensation, long-term fees we And a that so December an you an retirement This expect dimensionalize costs. recur is million, in and incentive mentioned then of period little have that that a not of the in evenly bit those in are would item. items onetime about benefit that first

fourth every quarter. So every quarter, that creates pop a

Operator

with Our line question Stanley. the from Cyprys of next Instructions] Michael [Operator Morgan comes

Michael Cyprys

the on contributing with that retail on update many is marketplace was SMAs? X guys overcome retail much to remind and question may traction the the you can us in like your of see could approach today. to that strategies how us you SMAs. a bring hoping just it you particularly income SMAs flows you'd there seeing the I you're years to you how the where some Maybe Just currently over so have and to in side? of want fixed kind you offer more hurdles to marketplace, on in And to

Robert Sharps

and (sic) with the of of number [ Brennan pretty Rowe take do that Yes. terms Michael get are some of to broaden and strategies our established. as in part getting we us worked reasonably manager Today, wealth. are, XX% new in we've of SMA, number our available to to looking wealth ], This the a rosters opportunities we going we traction are strategies I for is broaden well this T. time. and to the think strategic instances, is of element availability And a hard for want offer investment SMA Price retail an over important many It's offering. bring U.S. placements. our many lineups in are and of strategies to initiative regard broader that where partners market we in market.

year. new have placements We of number seen this a

a it focus. So is

regard with share? or to specifics Jen, any flows that we AUA

Jen Dardis

is this an No, plan. hasn't significant a been. number in think not part at overall the I of Again, there this It's flows point.

talking and a vehicles last you we've clients that prefer large are wealth newer complex. for think some strategy year, some based and that part and been platforms obviously, some the the their fund how about just ETF broader they mutual fairly on have clients still If plan buy, about prefer SMAs of

able our we available products for provide as clients, clients type make being that whatever to of we for suite so sure from And just broad want think are vehicles of we that them. buying to about have

Robert Sharps

to successes that we a distribution did this specifically With SMA muni Yes. year, partner. developed regard for bring a specific was single launches or

all-cap equity opportunities focused global X this launched We and U.S. additional growth. also year, earlier SMAs,

this I a continues As big opportunity. said, to be

but I path disclosed and account remember think glide model that, you includes retail to roundly advisory do AUA only $XX we But SMA that funds. billion. not number in an submission we date where that is target custom have also

all that talking So the wealth SMA that opportunity wouldn't in to -- you're of about the sort referring that the we're channel. channel necessarily the addressing of be or terms in

Operator

Schorr from Evercore with Our ISI. next question Glenn of comes the line

Glenn Schorr

to rise guess, allocation curious given one long been date are any or -- have allocations I kind or all equity. that you've contemplated very yields helped of normally no performance, in have making great, income. you shifts Target I'm straightforward your But made It's and into you if in traditionally flows complaints. great the flows fixed

curious you're obviously has how the shifted world thinking that as Just about some?

Robert Sharps

straightforward Yes, than Glenn, maybe less think. you

equity offer series, a higher glide our is path. flagship we First, which

clients that that of base lower risk tolerance We also for first has glide prefer a is offer participant whose part plan That's I point as which would target series a equity or design. their lower path the clients overall for those make. a

along actually course to of equity asset underweight at make ability tactical blocks. allocations building the that I design the underlying have perspective. tactical also The determines classes the we allocation second point And over been we've a year is strategic and would make to while point portfolio this the the path, from glide a equities asset certain allocation

our equity ultimately So introducing are equity within we've also and has hedged beta. that little reallocate that component within that I has worked flexibility allocation, equity less would conservative, on less more to glide say developing asset along that a our bands, -- the blocks a committee building and are allocation or path. funds there

fixed the that selection more and excellent the bit that the just that point underlying within margin target glide a blocks strategic building equity across performance equities, low I date would out security would we by at markets we portfolio income driven in across that of our path design Finally, was down, and in some in strong QX, but while were I series of and little have the high vintages so the underweight and had very say by in strategies.

a beneath surface, going So there's there. the lot on

believe, really the other do equity building ways for asset in the strategic we selection allocation a terms But to longer-dated philosophically, security of portfolio value right particularly You're vintages and there is that and drive high important. tactical are of component the portfolios. blocks, underlying design the the that

And all so I cylinders. this we've been hitting year, think far on

Operator

the final Jefferies. of Our Daniel comes from Fannon with question line

Daniel Fannon

to the Target follow Date up franchise. on wanted I

I you happens mentioned of year-over-year. plan that dynamics gross And think, Jen, with were also up sales then, sometimes Rob, sponsors. year-end XX% you the mentioned some

think that sales. opportunity for gross about are strong you conversations talk and And was how I months? of with class as But this over of plan XX performance also the near-term happening the dynamic associated term, and sponsors hoping so ultimately, kind some how asset develops longer to passive that you or means with maybe the and this the highlighted think what about you within next channel just

Robert Sharps

Dan, thank best the our feel for you Look, we the offering Yes. are in the retirement business. like funds question. flagship date

look And you range. high at It's the a number competitiveness design, like If like at in the substantial us. look underlying a alpha-rich loan, made also yield. focus in if investment for building the we you broad a areas big portfolio XXXX been have fees. of a there, our strategic bank diversifiers blocks, We of areas in

fee those particularly For sensitive. plans are that

U.S. blend equity series a have U.S. core in passive fixed does -- in cap large in use that income. We and

fund, if we Rowe whether really T. we take to performance it's compare believe you or So great at on look to whether of that it's and passive. And value you proposition Price blend the passive. I have the flagship the think a

it's an important we the momentum for support numbers stand for and dedicate specific where really area we us. and I area area right themselves. now. It's an think marketing an that dollars It's have to

basis in the around have on flows where some There Target you ones might in a a January. terminated plan Date are new always record have year-to-date planned year-end, franchise. dynamics on We that's board oftentimes,

our So with land I'm into or view, to retirement in -- out about as we franchise we're the that not good or It carry either not really momentum. something not excited into as the proposition. will January. visibility in even if and really going forward of resonating really whole sometimes marketplace, December go like a good a you regard and on But land longer of whether take kind in is We feel our value coming lot to momentum going comment feel there's XXXX. or the year-end feels to in you about

Jen Dardis

Yes.

previous times. we've talked think I in

plan the of Target people X in about are are Dates, in the significantly when year. into the actual wins who target net are the or components. think are flows see There's the on throughout retirement that so you you that are year-end for a kind dates These and distributions those go flows new -- participant If But there typically. those regular. basis, don't balances paycheck additions add flows into to the more

And talk pressure plan so when we about about year-end. about That's participant changes. changes, not at

look for add a continuing the to flows is good clients And we have. sign plans as new to us stable so of this at we we're that positive that

Operator

Securities. Our the next with from Fargo question comes of Wells line Finian O'Shea

Finian O'Shea

starting A what additional or out monthly And maybe fund direct question doing? an you takes Can out retail quarterly in partners is maybe how rolling format? the you vehicles the the the update in in and consider and sales with seeing for of for registered lending on how progress puts you're then do industry give OCREDIT. context your distribution

Robert Sharps

the Thank Finian. for you question. Yes.

actually just trends, of of effectiveness Okay, end in we the the at quarter. third reached terms

is distribution leveraging existing is syndicate really our by current building the wealth this platforms And relationships strong first of our wealth So in our a month. focus on channel. wide

and started. relationships consultants we're relationships, got really So investment we have the regional just office advisers. field the with in and brokers getting We've have that home

think delivering in powerful. Price's be in pretty the XX-year of the channel wealth performance T. what great and is of Rowe and I the we've wealth should channel alternative presence OHA's resources in combination that heard credit history

thinking about of to worry going kind we're about what do next. we Before

focused on I in think a really wealth we're with is capabilities OHA proposition OCREDIT. value a We executing really, the very excellent channel. well-designed to the to regard to bring way it think

to with be regard top that and we some as about follow-on in We time, we we'll get things and with to QX launching will see build have we visibility opportunities on engage kind we're have do it handful partners out, what are to on go product We advisory offerings with other think, unique there clients that to is a are pipeline of will, with the wealth of and and early this in in ultimately, into demand. I as think our our success where -- launch platforms some of regard do XXXX.

be say right with focus now, until we're comment some the from will to So to for we're on. follow-on in OCREDIT. team be offering monthly but of too pivots it really will working hard I'd be. flows, but being early this about platforms what will our that OCREDIT will our much time really successful excited on And by on be kind marketplace, next we're encouraged the launching the what

Operator

I Rob Thank remarks. back the like now to Sharps you. closing to conference for would turn

Robert Sharps

for for All and your right. Price. Rowe in joining us T. interest Very Thank you good.

As executing progress talked focused efforts. working continued franchises, to on our about, against signs to quarter, our particularly associates we're very, strength this are and investment very our show strategic we've our largest initiatives, hard of cost-saving make on in performance our

the really elevated of are work that will progress. very continue plan organic growth. we very associates to hard doing progress the XXXX. dedication our that's we in face While are appreciate and and optimistic returning the confident I'm to Really that to toward make our behind And outflows, what's and work kind our improve flow associates, of picture net in

So thank you again.

Operator

concludes your you conference Thank This today's for call. participation.

wonderful You may day. have now Everyone, disconnect. a

T. Rowe Price (TROW) 27 Oct 232023 Q3 Earnings call transcript