Q2 2025 T Rowe Price Group Inc Earnings Call Transcript
Key Points
- T. Rowe Price Group Inc (TROW) is building momentum for long-term growth by expanding its ETF business and leveraging partnerships.
- The company's Target Date funds have strong long-term performance, with top quartile performance for the three, five, and ten-year periods.
- Fixed income has experienced six consecutive quarters of positive net flows, indicating growth in this segment.
- The ETF product line is expanding, with recent launches bringing the total to 24 ETFs, and more in the pipeline.
- T. Rowe Price Group Inc (TROW) is implementing a multiyear plan to align expense growth with anticipated revenue growth, aiming for low single-digit expense growth in 2026 and 2027.
- T. Rowe Price Group Inc (TROW) faced $14.9 billion in net outflows, primarily driven by US equities and client redemptions.
- The company's annualized effective fee rate decreased to 39.6 basis points due to a mix shift towards lower-priced products.
- Adjusted operating expenses increased by 3.7% from Q2 2024, driven by technology and facility costs.
- The Emerging Markets segment had a weaker quarter versus peers, impacting overall performance.
- The company is closing a small number of subscale strategies, indicating challenges in maintaining certain product lines.
Good morning. My name is Daniel, and I will be your conference facilitator today. Welcome to T. Rowe Price's Second Quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this call is being recorded and will be available for replay on T. Rowe Price's website shortly after the call concludes.
I will now turn the call over to Linsley Carruth, T. Rowe Price's Director of Investor Relations.
Hello, and thank you for joining us today for our second quarter earnings call. The press release and the supplemental materials document can be found on our IR website at investors.troweprice.com. Today's call will last approximately 45 minutes.
Our Chair CEO and President, Rob Sharps; and CFO, Jen Dardis, will discuss the company's results for about 15 minutes. Then we'll open it up to your questions at which time we'll be joined by Head of Global Investments, Eric Veiel. We ask that you limit it to one question per participants.
I'd like to remind you that during the
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