Q3 2025 T Rowe Price Group Inc Earnings Call Transcript
Key Points
- T. Rowe Price Group Inc (TROW) reported a high of $1.77 trillion in assets under management as of September 30, 2025.
- Long-term investment performance is solid, with over 50% of funds beating their peer groups on a 3-, 5-, and 10-year basis.
- The strategic collaboration with Goldman Sachs aims to deliver diversified public and private market solutions, enhancing offerings for retirement and wealth investors.
- Positive net flows were observed in fixed income, multi-asset, and alternatives, with strong demand for the target date franchise and ETF products.
- The company is actively managing expenses, with a broad expense management program in place to keep controllable expense growth in the low single digits for 2026 and 2027.
- T. Rowe Price Group Inc (TROW) experienced $7.9 billion in net outflows in Q3 2025, primarily driven by US equities.
- The effective fee rate decreased due to a shift to lower-priced vehicles and strategies, impacting revenue.
- The institutional pipeline is softer than in previous quarters, affecting future growth prospects.
- Performance in certain opportunistic funds was modestly below target, impacting overall results.
- The company incurred $28.5 million in nonrecurring costs related to severance and compensation, affecting short-term financials.
Good morning. My name is Daniel, and I will be your conference facilitator today. Welcome to T. Rowe Price's third-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 third quarter earnings call. The press release and the supplemental materials documents 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 will be joined by Head of Global Investments, Eric Veiel. We ask that you limit it to one question per participant.
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