T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Goldman Sachs US Financial Services Conference 2019
17 slides from T. Rowe Price's conference presentation, Dec 10, 2019
Slide 1: Goldman Sachs US Financial Services Conference
GOLDMAN SACHS US FINANCIAL SERVICES CONFERENCE — T. Rowe Price Group, Inc. December 10, 2019 A copy of this presentation is available at troweprice.gcs-web.com/investor-relations. Data as of September 30, 2019, unless otherwise noted.
Slide 2: Forward-looking statements
Forward-looking statements 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 of 1995 with respect to T. Rowe Price’s future financial or business performance, strategies, or e
Slide 3: Culture is central to our long-term success
Culture is central to our long-term success Investment Excellence The heart of everything we do Clients First We succeed if our clients succeed Long-Term Collegiality and Collaboration Leveraging our best ideas creates Success competitive advantage Trust and Mutual Respect Essential for a strong com
Slide 4: Our vision—we are executing on a longer-term plan
Our vision—we are executing on a longer-term plan Premier active asset manager Strong process orientation and system of internal controls Integrated investment solutions Destination of choice for top talent provider More global and diversified More adaptive and agile company asset manager Global par
Slide 5: Investment performance remains strong
Investment performance remains strong Outperforming Top Morningstar Outperforming U.S. mutual funds Morningstar median1 quartile1 benchmark2 3 5 10 3 5 10 3 5 10 Asset Class years years years years years years years years years U.S. Equity 81% 87% 83% 53% 70% 70% 68% 77% 50% Global and 70% 71% 94% 4
Slide 6: Diversified organic growth of $11.1b YTD through October
Diversified organic growth of $11.1b YTD through October Net flows by asset class ($b) Net flows by client geography $7.7 $11.1 EMEA 13% $3.6 ($0.1) APAC 22% Americas ($1.5) $1.4 65% $0 U.S. Int'lInt’l. Equity U.S. Int'lInt’l. Fixed Multi- Total Equity Equity Fixed Fixed Income Asset Income Income D
Slide 7: We continue to execute on our strategic priorities
We continue to execute on our strategic priorities Increased investment professional headcount to 6451 worldwide to further strengthen our research platform and continue to develop investment capabilities Executed on our product roadmap with the launch of new strategies, including Dynamic Credit
Slide 8: Investment capabilities
1 Investment capabilities Expanding our product lineup globally Global Equity Global Fixed Income Multi-Asset 2018 Global Equity Dividend Asia Credit Retirement Blend Trusts SMAs: Large-Cap Core, Equity Income, Multi-Strategy Total Return International Core, Australia Custom Target Date
Slide 9: Investment capabilities
1 Investment capabilities ETFs are another vehicle to meet client needs Deliver a new way for investors to access our alpha generation and offer certain benefits relative to other wrappers for taxable investors Expand our distribution reach by allowing us to engage with investors who primarily or ex
Slide 10: Investment capabilities
1 Investment capabilities The T. Rowe Price Semi-Transparent Active ETF Model Our approach aims to provide the benefits of a traditional ETF and will utilize industry-recognized, transparent ETF processes, giving market makers the information needed to facilitate efficient trading and shielding our
Slide 11: Distribution capabilities
2 Distribution capabilities The U.S. intermediary channel, EMEA, and APAC continue to be growth drivers. U.S. Intermediary EMEA APAC Continued broker-dealer field Launched European Select Saw strong sales and flows territory expansion Equity and Global Government momentum, largely driven by Bo
Slide 12: We are continuing to invest for the long term
We are continuing to invest for the long term Non-GAAP operating expense growth1 8.9% 6%–9% 4%–7% 4%–5% February 2019 Guidance Range 2018 2019 2020 Projected Projected 1See the reconciliation between 2018 GAAP operating expenses and 2018 non-GAAP operating expenses in the Appendix. See the firm’s 20
Slide 13: Our investments span across the firm
Our investments span across the firm Investments Distribution Technology Continuing to build out investment teams Expanding our global footprint to further Continuing to modernize the globally, with a focus on attracting, strengthen our regional relationships and infrastructure of the firm, further
Slide 14: We continue to execute a consistent, opportunistic buyback approach
We continue to execute a consistent, opportunistic buyback approach Over the 5 years ended September 30, 2019 10 % 47.6m 10x 3.6 % shares repurchased at decline in common stock average P/E over dividend yield of outstanding from 261m to 235m $81.79 12-month earnings ended 9/30/191 repurchases2 weigh
Slide 15: Appendix
Appendix T. ROWE PRICE GROUP, INC. GOLDMAN SACHS US FINANCIAL SERVICES CONFERENCE 2019
Slide 16: Non-GAAP operating expenses reconciliation
Non-GAAP operating expenses reconciliation FY17/FY18 2017 2018 Change (%) Operating Expenses, GAAP basis $2,746.1 $3,011.2 9.7% Non-GAAP Adjustments: Expenses of consolidated T. Rowe Price investment products, net of elimination of its (6.7) (6.5) related management and administrative fees1 Compensa
Slide 17: Important Information
Important Information This material, including any statements, information, data and content contained within it and any materials, information, images, links, graphics or recordings provided in conjunction with this material are being furnished by T. Rowe Price for general informational purposes on
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