23 slides from T. Rowe Price's earnings presentation, Feb 8, 2024
Slide 1: Earnings Release Supplement Q4 2023
T. Rowe Price Group, Inc. February 8, 2024 Earnings Release Supplement Q4 2023 A copy of this presentation, which includes additional information, is available at investors.troweprice.com. Data as of December 31, 2023, unless otherwise noted. All figures are USD, unless otherwise noted.
Slide 2: Forward-Looking Statement
2T. R OW E P R IC E _P;KRlVX!Oj9!U6I This presentation, and other statements that T. Rowe Price may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to T. Rowe Price’s future financial or business performance, strategies, o
Slide 3: Q4 and Full Year Financial Highlights
3T. R OW E P R IC E _P;KRlVX!Oj9!U6I Key Metric Q4 2022 Q3 2023 Q4 2023 2022 2023 AUM AND FLOWS Net Flows ($17.1B) ($17.4B) ($28.3B) ($61.7B) ($81.8B) Assets Under Management (AUM)1 $1.27T $1.35T $1.45T $1.27T $1.45T Average AUM $1.28T $1.39T $1.37T $1.40T $1.36T Effective Fee Rate 42.3bps 41.7bps 4
Slide 4: Investment Performance vs Morningstar Median and Benchmarks
4T. R OW E P R IC E _P;KRlVX!Oj9!U6I % of Funds/ Composites U.S. Mutual Funds Outperforming Morningstar Median1,2 U.S. Mutual Funds Outperforming Morningstar Passive Peer Median1,3 Composites Outperforming Benchmarks4 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years 1 year 3 years 5 y
Slide 5: Assets Under Management
5T. R OW E P R IC E _P;KRlVX!Oj9!U6I $276 $391 $482 $489 $577 $692 $747 $763 $811 $991 $962 $1,207 $1,471 $1,688 $1,275 $1,445 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Firmwide AUM includes assets managed by T. Rowe Price Associates, Inc., and its investment ad
Slide 6: Assets Under Management and Net Flows
6T. R OW E P R IC E _P;KRlVX!Oj9!U6I Firmwide fee-basis AUM includes assets managed by T. Rowe Price Associates, Inc., and its investment advisory affiliates. Numbers may not add up due to rounding. Institutional includes defined contribution assets, including those through intermediaries and our fu
Slide 7: Annual Net Flows by Asset Class and Geography
7T. R OW E P R IC E _P;KRlVX!Oj9!U6I Asset Class Geography In billions Annual Net Flows Fixed Income Multi-Asset Alts Equity ($0.2) $-- ($44.6) ($72.7) ($85.4) FI 3.5 14.1 1.2 4.1 (6.8) MA 9.9 (8.5) 14.9 4.9 9.1 Alts -- -- -- 2.0 1.3 Totals $13.2 $5.6 ($28.5) ($61.7) ($81.8) Equity -100 -80 -60 -40
Slide 8: Quarterly Net Revenues
8T. R OW E P R IC E _P;KRlVX!Oj9!U6I Quarterly Net Revenues U.S. $ millions Investment advisory fees represent about 90% of net revenue in the periods presented Q4 2023 investment advisory revenue was $1,461.2M CABI, excluding amortization and impairment, was $51M in Q4 2023 compared to $85M i
Slide 9: Quarterly Adjusted Operating Expenses
9T. R OW E P R IC E _P;KRlVX!Oj9!U6I Quarterly Adjusted Operating Expenses U.S. $ millions For the reconciliation between GAAP and adjusted (non-GAAP) expenses, see the current earnings release. Capital allocation-based income (CABI) compensation represents the portion of CABI (carried interest) tha
Slide 10: Annual Net Revenues and Adjusted Operating Expenses
10T. R OW E P R IC E _P;KRlVX!Oj9!U6I Annual Net Revenues and Adjusted Operating Expenses U.S. $ millions ($27.9) / (0.4%) Net Revenues 2022 Equity Fixed Income Multi-Asset Alternatives CABI CABI (Amortization/ Impairment) Admin & Distribution 2023 $6,488.4 $6,460.5 2022 Comp & Related CABI Compensa
Slide 11: Quarterly Operating Income and Net Income
11T. R OW E P R IC E _P;KRlVX!Oj9!U6I 1Operating margin is equal to operating income divided by net revenues; adjusted operating margin is equal to adjusted operating income divided by adjusted net revenues. For the reconciliation between GAAP and adjusted (non-GAAP) operating income and operating m
Slide 12: Annual Operating Income and Net Income
12T. R OW E P R IC E _P;KRlVX!Oj9!U6I $1,975.6 $2,276.8 $2,995.3 $1,864.8 $1,750.1 $8.07 $9.58 $12.75 $8.02 $7.59 0% 200% 400% 600% 800% 1000% 1200% 1400% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2019 2020 2021 2022 2023 1Operating margin is equal to operating income divided by net
Slide 13: Capital Returned to Stockholders and Cash and Investments
13T. R OW E P R IC E _P;KRlVX!Oj9!U6I Capital Returned to Stockholders Cash and Investments1 281 1,122 3,234 103 254 2,246 700 Q4 2023 2023 2021-2023 1Cash and investments includes cash and investments in T. Rowe Price products. This display does not include the non-controllable interest of certain
Slide 14: Quarterly Capital Allocation-Based Income (carried interest)
14T. R OW E P R IC E _P;KRlVX!Oj9!U6I At the end of each reporting period, accrued carried interest reflects what would be due from each investment fund as if the fair value of the underlying investments were realized as of such date. The change in accrued carried interest reflects amounts that are
Slide 15: Annual Capital Allocation-Based Income (carried interest)
15T. R OW E P R IC E _P;KRlVX!Oj9!U6I At the end of each reporting period, accrued carried interest reflects what would be due from each investment fund as if the fair value of the underlying investments were realized as of such date The change in accrued carried interest reflects amounts that are (
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 17: Non-GAAP Reconciliation Tables
17T. R OW E P R IC E _P;KRlVX!Oj9!U6I Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2019 2020 2021 2022 2023 Net Revenues, GAAP Basis $1,524.2 $1,537.6 $1,610.2 $1,670.7 $1,642.0 $5,617.9 $6,206.7 $7,671.9 $6,488.4 $6,460.5 Non-GAAP Adjustments1: Consolidated Investment Products (0.2) 0.6 0.3 0.7 0.5 6.8
Slide 18: Appendix
Appendix
Slide 19: Assets Under Management – by Account Type
19T. R OW E P R IC E _P;KRlVX!Oj9!U6I Assets Under Management – by Account Type U.S. $ billions Firmwide AUM includes assets managed by T. Rowe Price Associates, Inc., and its investment advisory affiliates. 1 There is approximately ~$5B in defined benefit plan-related assets under management reflec
Slide 20: Alternatives - Fee-basis AUM and Unfunded Commitments
20T. R OW E P R IC E _P;KRlVX!Oj9!U6I Alternatives - Fee-basis AUM and Unfunded Commitments U.S. $ billions Fee-Basis AUM Private Markets CLOs Liquid Total At December 31, 2022 $16.9 $16.5 $10.0 $43.4 Net Capital Deployments1 2.4 1.4 0.1 3.9 Manager-driven Distributions (2.6) - - (2.6) Net Flows, as
Slide 21: ETF AUM and Flows
21T. R OW E P R IC E _P;KRlVX!Oj9!U6I ETF AUM and Flows Assets Under Advisement (AUA) $0.2 $0.6 $0.8 $2.5 $0.1 $0.4 $0.4 $1.4 2020 2021 2022 2023 Assets under advisement represent non-discretionary advisory services offered through model delivery and multi-asset solutions for providers to implement.
Slide 22: Investment performance overview (slide 4) notes
22T. R OW E P R IC E _P;KRlVX!Oj9!U6I Investment performance overview (slide 4) 1 Source: © 2024 Morningstar, Inc. All rights reserved. The information contained herein: 1) is proprietary to Morningstar and/or its content providers; 2) may not be copied or distributed; and 3) is not warranted to be
Slide 23: Entities referenced and important information
23T. R OW E P R IC E _P;KRlVX!Oj9!U6I The following entities may be referenced in the earnings supplement or the earnings call: TRPA – T. Rowe Price Associates, Inc. TRPIM – T. Rowe Price Investment Management, Inc. This material, including any statements, information, data and content contained