Economic Outlook - Consumers are increasingly concerned about a tightening job market, yet overall optimism about the economy's health remains intact, with many believing conditions will improve and the economy is on track for recovery [1] - Consumer confidence rose by 2.2 points in February to 91.2, surpassing analysts' expectations of 87, following a revised January figure of 89 [3] - The unemployment rate decreased to 4.3% in January from 4.4% in December, supported by the addition of approximately 130,000 new jobs [5] Consumer Sentiment - The University of Michigan's Consumer Sentiment Index increased to 57.3 in February from 56.4 in January, marking the highest level since August 2025, indicating growing investor confidence that inflation will ease [5] - Short-term inflation expectations fell to a 13-month low of 3.5% in February from 4% in January, suggesting a belief that the worst effects of tariffs are behind the economy [6] Investment Opportunities - Large-cap growth funds such as Fidelity Contrafund, JPMorgan U.S. GARP Equity I, and T. Rowe Price Blue Chip Growth are identified as attractive investment options due to their strong performance and potential for future gains [2][7] - Fidelity Contrafund has a three-year return of 29.9% and a five-year return of 16.2%, with an annual expense ratio of 0.75% [10] - JPMorgan U.S. GARP Equity I fund has a three-year return of 27.5% and a five-year return of 16.7%, with an annual expense ratio of 0.59% [12] - T. Rowe Price Blue Chip Growth fund has a three-year return of 29.1% and a five-year return of 11.6%, with an annual expense ratio of 0.71% [14]

A net zero alliance for asset managers has resurrected itself after shelving its work last year amid a wave of US defections.The Net Zero Asset Managers initiative now has more than 250 signatories, including Aberdeen Investments and Amundi SA, as well as the European and UK entities of T. Rowe Price Group Inc. and Wellington Management, according to a statement on Wednesday. NZAM suspended its operations in January 2025, announcing at the time that it would conduct a review to ensure it remained “fit for p ...

T. Rowe Price Group, Inc. (NASDAQ:TROW) is one of the Cheap NASDAQ Stocks To Buy in 2026. On February 11, T. Rowe Price Group, Inc. (NASDAQ:TROW) announced its assets under management for January 2026. ​The company reported $1.797 trillion in assets under management, up from $1.776 trillion in January 2025. The major increase was recorded in multi-assets, which grew from $627 billion a year ago to $646 billion in 2026. Moreover, both the fixed income and alternatives grew by $1 billion during the year. La ...

Core Insights - T. Rowe Price's research indicates that active management strategies can enhance core portfolio returns, potentially capturing excess returns that passive index funds miss [1] - Generating an additional 25 basis points (0.25%) in annual returns over 40 years could equate to two extra years of retirement spending, while 50 basis points could add five years [1] - The report emphasizes the opportunity cost of maintaining passive core holdings, suggesting that active strategies can utilize capital more efficiently [1] Active Management Strategy - T. Rowe Price's active core strategies aim for a tracking error of 50 to 100 basis points, allowing for consistent performance relative to benchmarks while enabling diversified stock selection [1] - The strategy avoids large concentrated bets, instead opting for smaller overweight and underweight positions across a broad range of securities [1] - Effective risk management is crucial, involving not only position size control but also guarding against unintended exposures to stocks that may trade similarly due to thematic influences [1] Research Methodology - The firm's approach combines fundamental research from equity analysts with quantitative analysis of historical market data to exploit market inefficiencies [1] - The report highlights that markets often focus on short-term outcomes, leading to price dislocations that can benefit long-term investors [1] - T. Rowe Price's dual-engine design aims to address how markets evaluate company-specific situations against historical precedents [1]

Company Overview - T. Rowe Price Group, Inc. has a market cap of $20.3 billion and operates as a global investment manager serving various clients including individuals, institutions, and retirement plans [1] Stock Performance - Over the past 52 weeks, TROW shares have decreased by 12.6%, while the S&P 500 Index has returned 12.5% [2] - Year-to-date, TROW shares are down 8.5%, contrasting with a marginal gain in the S&P 500 [2] Recent Financial Results - On February 4, T. Rowe Price Group's shares fell by 5.5% following Q4 2025 results, which included weaker-than-expected adjusted EPS of $2.44 and revenue of $1.93 billion [4] - The company experienced net client outflows of $25.5 billion, with $23.2 billion attributed to equity outflows [4] - Adjusted operating expenses rose to $1.25 billion from $1.13 billion in Q3 [4] Earnings Forecast - For the fiscal year ending December 2026, analysts project T. Rowe Price Group's adjusted EPS to grow by 3.8% year-over-year to $10.09 [5] - The company's earnings surprise history is mixed, with three beats and one miss in the last four quarters [5] Analyst Ratings and Price Targets - Among 14 analysts covering T. Rowe Price Group, the consensus rating is a "Moderate Sell," consisting of nine "Hold" ratings, one "Moderate Sell," and four "Strong Sells" [5] - Morgan Stanley has cut its price target on T. Rowe Price Group to $115 while maintaining an "Equal Weight" rating, with a mean price target of $100.33 indicating a nearly 7% premium to current price levels [6] - The highest price target of $115 suggests a potential upside of 22.6% [6]

Investment Overview - As of December 31, 2025, the company had seed capital investments totaling $1.1 billion and co-investments of $0.3 billion in alternative products[32]. - The total fair value of investments as of December 31, 2025, was $2,026.3 million, with a potential loss of $303.8 million, representing a 15% decrease[303]. - T. Rowe Price's investments in discretionary investments were valued at $463.7 million, with a potential loss of $46.4 million, or 10%[303]. - T. Rowe Price's investment in redeemable seed capital investments was $316.1 million, with a potential loss of $42.6 million, or 13%[303]. - T. Rowe Price's investments used to hedge deferred compensation liabilities were valued at $1,243.3 million, with a potential loss of $214.5 million, or 17%[303]. - The cumulative translation loss related to the investment in UTI was $57.4 million at December 31, 2025[306]. Revenue Sources - Nearly 55% of the company's investment advisory fees are derived from U.S. mutual funds, with the remainder from collective investment trusts, subadvised funds, and separately managed accounts[37]. - Performance-based investment advisory fees are recognized when returns exceed the stated hurdle, leading to variability in revenue recognition year-to-year[40]. Client and Market Reach - The company services clients in 60 countries, with investors outside the U.S. accounting for nearly 9% of total assets under management at the end of 2025[34]. - The company distributes its products through five primary channels across three geographical regions: Americas, EMEA, and APAC[34]. Investment Strategies - The company manages a diverse range of investment strategies across equity, fixed income, multi-asset, and alternatives, designed to meet the changing needs of investors[27]. - The Capital Appreciation Strategy has been closed to new investors since 2014, representing approximately 6% of total assets under management as of December 31, 2025[33]. - The company has diversified its investments among various fixed income products to manage market risk[299]. Regulatory and Competitive Environment - The company is subject to extensive regulations that could impact its operations, including compliance with laws related to cybersecurity and climate-related disclosures[46]. - The company is subject to substantial competition from various financial institutions, including hedge funds and banks[53]. Human Resources - As of December 31, 2025, T. Rowe Price employed 7,773 associates, a decrease of 4.7% from 8,158 associates at the end of 2024[57]. - T. Rowe Price's talent acquisition strategy has been recognized, being named among Fortune's World's Most Admired Companies[62]. - The company offers comprehensive benefits, including health care and retirement benefits, to support associates' well-being[64]. Operational Considerations - Investment management agreements allow for termination with short notice, which could materially affect the company's results if U.S. mutual fund agreements are terminated[39]. - The company provides various administrative services, including mutual fund transfer agent and fund accounting, to a range of clients[43].

Core Insights - T. Rowe Price Group, Inc. (TROW) reported preliminary assets under management (AUM) of $1.80 trillion as of January 31, 2026, marking a 1.2% increase from the previous month despite net outflows of $5.2 billion, which were partially mitigated by favorable market performance [1][11] AUM Breakdown - As of the end of January, T. Rowe Price's equity products remained at $879 billion, unchanged from December 2025. Fixed income products increased slightly to $213 billion, while multi-asset products rose nearly 3% to $646 billion, indicating strong client demand. Alternative products also saw a 1.7% increase to $59 billion [2][11] - The company's target-date retirement portfolios reached $580 billion, reflecting a 3.4% increase from the prior month, showcasing the strength of its retirement-focused offerings [3] Growth Trends - Over the five-year period from 2020 to 2025, T. Rowe Price's AUM experienced a compound annual growth rate (CAGR) of 3.8%, driven by market appreciation and sustained demand for multi-asset and fixed-income solutions [4] - In terms of long-term performance, 46% of T. Rowe Price's U.S. mutual funds' AUM outperformed the Morningstar median, while 43% exceeded the passive peer median over the five years ending December 31, 2025. Additionally, investment advisory clients outside the United States accounted for 8.8% of total AUM, highlighting geographic diversification [5] Competitive Position - T. Rowe Price benefits from a well-diversified AUM mix across various asset classes, client segments, and geographies, which provides stability to its asset base. The company is well-positioned to sustain AUM growth in the future, supported by a strong brand and consistent investment track record [6] - Peers such as Franklin Resources, Inc. (BEN) and Invesco Ltd. (IVZ) have also shown steady AUM growth, with Franklin reporting a preliminary AUM of $1.71 trillion as of January 31, 2026, up 1.3% sequentially, and Invesco achieving a five-year CAGR of 10% [7][8][9]

Core Insights - T. Rowe Price Group, Inc. (NASDAQ:TROW) is recognized among the Dividend Champions, Contenders, and Challengers List, highlighting its strong dividend yield [1] - Evercore ISI has reduced its price target for T. Rowe Price from $116 to $106, citing equity outflows as a significant concern despite the quarter meeting expectations [2] - The company reported $1.78 trillion in assets under management at the end of Q4 2025, reflecting over 10% growth year-to-date, despite experiencing $56.9 billion in net outflows [3] Group 1: Financial Performance - T. Rowe Price's CEO Robert Sharps indicated that the firm is gaining traction in its strategic priorities and remains confident in its long-term plans [3] - The company has shown strong long-term results in fixed income and its Target Date franchise, with improving performance across key investment strategies [4] Group 2: Strategic Initiatives - T. Rowe Price has formed a collaboration with Goldman Sachs to explore wealth and retirement opportunities, launching co-branded model portfolios [4] - In January, T. Rowe Price announced a strategic partnership with First Abu Dhabi Bank, further expanding its market reach [4] Group 3: Product Development - The company launched 13 ETFs in 2025, increasing its total ETF lineup to 30 and surpassing $21 billion in ETF assets [5] - T. Rowe Price achieved a first close on a firm-managed private equity fund in early 2026, while OHA recorded over $16 billion in fundraising for the second consecutive year [5]

Core Insights - T. Rowe Price's annual 401(k) benchmarking report highlights that participants utilizing financial advice, education, or tools have an average account balance that is twice as high as non-users and save at a rate 29% higher than those who do not engage with these resources [1][1][1] Group 1: Participant Behavior - Only 13.8% of participants currently utilize financial advice, education, or tools available through their workplace retirement site [1] - Participants in their 50s and 60s tend to increase their savings rates by an average of 1.4 percentage points annually, surpassing typical automatic increase defaults [1][1] - Less than 2% of participants with below-average retirement savings make catch-up contributions, while 15% of those with above-average savings do [1] Group 2: Plan Design and Features - Plans with automatic enrollment see 99% of participants either maintain or increase their default savings rate, indicating the long-term benefits of effective plan design [1] - Plans that offer emergency expense withdrawals have a participation rate of 76%, compared to 67% in plans without such features [1] - Seventy-eight percent of plans have adopted at least one optional SECURE 2.0 provision, with higher catch-up limits and self-certified hardships being among the most popular [1] Group 3: Roth Contributions - Plans that include a Roth employer contribution experience 30% higher Roth participation rates, 29% higher Roth balances, and 6% higher Roth savings rates compared to those without a Roth match [1] - Younger participants are particularly inclined to utilize Roth options [1] Group 4: Company Overview - T. Rowe Price manages $1.80 trillion in client assets as of January 31, 2026, with approximately two-thirds of these assets being retirement-related [1] - The firm has over 85 years of experience in investment excellence and retirement leadership, focusing on client interests and integrity [1]

Core Insights - T. Rowe Price has two leading ETFs in early 2026, with the T. Rowe Price Natural Resources ETF (TURF) showing a year-to-date return of 16.1% and the T. Rowe Price QM U.S. Bond ETF (TAGG) attracting $233.08 million in net inflows [1] Group 1: Performance Highlights - TURF leads T. Rowe Price ETFs in performance with a return of 16.1% year-to-date as of February 10 [1] - TAGG has attracted $233.08 million in net inflows, making it the top fund in terms of flows for the firm [1] Group 2: Investment Strategies - TURF focuses on upstream natural resource companies involved in exploring, extracting, and developing commodities across various sectors, aiming to capitalize on commodity cycles [1] - TAGG employs a "core plus" approach to outperform the Bloomberg U.S. Aggregate Bond Index, utilizing quantitative models and fundamental credit research [1] Group 3: Fund Characteristics - TURF, launched in June 2025, has an expense ratio of 0.44% and a fund size of $19.2 million [1] - TAGG, initiated in September 2021, has a fund size of $1.77 billion and a competitive expense ratio of 0.08% [1]