Press release
T. ROWE PRICE RELEASES RESEARCH STUDY ON ITS ACTIVE FUNDS
Analysis Demonstrates Historical Long-Term Performance Strength Compared to Passive and Active Peers BALTIMORE, Nov. 28, 2022 /PRNewswire/ -- T. Rowe Price
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"Analysis Demonstrates Historical Long-Term Performance Strength Compared to Passive and Active Peers\nBALTIMORE, Nov. 28, 2022 /PRNewswire/ -- T. Rowe Price (NASDAQ-GS: TROW), a global investment management firm and a leader in retirement services, has released new research that shows over the last 20 years ended September 30, 2022, its actively managed funds have consistently outperformed passive peer funds – net of fees.\nLooking at rolling monthly 10-year periods, findings show T. Rowe Price funds beat comparable passive fund averages 73% of the time1, more often than the aggregate of all actively managed funds—excluding T. Rowe Price—comprising the Morningstar Direct database, which did so 47% of the time2. This also compares favorably to the five largest active management firms by assets under management in the mutual fund space, whose funds, when aggregated together, have outperformed the same passive averages 62% of the time3.\nThe study focuses on the individual performance of 124 actively managed T. Rowe Price mutual funds and exchange-traded funds (ETFs), including equity, fixed income, and asset allocation funds, compared to average passive returns in the corresponding Morningstar category. Although T. Rowe Price funds are the focus, the calculation of passive averages allows comparison for more than 10,700 active funds to the passive averages representing 3,109 passive funds over 1,136,941 rolling one-year time periods. The T. Rowe Price funds reviewed represent 71% of the firm's mutual fund assets under management and 38% of the firm's total assets under management as of September 30, 2022. The equity category consisted of U.S. equity, international equity, and sector equity funds. The fixed income category included both U.S. and international bond funds. \nThe full study methodology can be found here.\nT. Rowe Price fund performance was analyzed using two metrics: the frequency of outperformance, or active success rate, and the level of outperformance, or the average annualized excess returns over and above the determined passive average return. The passive average determining these metrics was calculated using the equally weighted average of the returns posted by the oldest share class of the passive funds in the Morningstar Direct category for each T. Rowe Price fund in the study.\nRESULTS\nThe annualized excess ...