Core Viewpoint - The article posits that T. Rowe Price is expected to thrive in the next decade due to the current overvaluation of the broader market, presenting a significant investment opportunity for value dividend investors [1]. Group 1: Company Analysis - T. Rowe Price is identified as a heavily undervalued company with substantial upside potential, making it an attractive target for long-term growth dividend investors [1]. - The author emphasizes a strategy focused on long-term compounding through investments in dividend-paying companies, indicating a belief in the sustainability of T. Rowe Price's business model [1]. Group 2: Investment Strategy - The article reflects a value dividend investment approach, highlighting the importance of identifying undervalued companies to capitalize on future growth [1]. - The author expresses a commitment to investing in companies that can provide a reliable income stream through dividends, which aligns with the long-term investment philosophy [1].

Financial Performance - Net revenues for 2024 were $7,093.6 million, a 9.8% increase from $6,460.5 million in 2023[308]. - Net income attributable to T. Rowe Price Group, Inc. rose to $2,100.1 million in 2024, compared to $1,788.7 million in 2023, reflecting a growth of 17.4%[308]. - Earnings per share (EPS) on common stock increased to $9.18 in 2024, up from $7.78 in 2023, marking a 17.9% increase[308]. - Total comprehensive income attributable to T. Rowe Price Group, Inc. was $2,095.9 million in 2024, compared to $1,794.2 million in 2023, indicating a growth of 16.8%[310]. - Net income for 2024 increased to $2,135.8 million, up from $1,835.7 million in 2023, representing a growth of 16.4%[312]. - Total stockholders' equity increased to $9,505.1 million as of December 31, 2023, compared to $9,030.2 million at the end of 2022, indicating a rise of 5.2%[313]. - Dividends paid to common stock and equity-award holders amounted to $1,135.6 million in 2024, slightly up from $1,121.7 million in 2023[312]. - The company reported a net gain on investments of $363.2 million in 2024, slightly up from $355.2 million in 2023[308]. - The company experienced a net change in cash and cash equivalents of $569.1 million during the year, compared to $269.1 million in 2023, an increase of 111.2%[312]. Assets and Investments - Total assets increased to $13,472.0 million as of December 31, 2024, up from $12,278.8 million in 2023, representing an increase of 9.7%[306]. - Cash and cash equivalents increased to $2,649.8 million in 2024, compared to $2,066.6 million in 2023, a rise of 28.2%[306]. - The fair value of investments held at fair value totaled $3,770.9 million in 2024, compared to $2,937.8 million in 2023[393]. - The total assets of consolidated investment products increased from $1,959.3 million in 2023 to $2,044.0 million in 2024, with investments rising from $1,847.0 million to $1,936.2 million[400]. - Cash equivalent investments in T. Rowe Price money market mutual funds totaled $2,309.8 million as of December 31, 2024, up from $1,678.1 million in 2023, with dividends earned of $128.3 million in 2024[378]. Investment Advisory Fees - Total investment advisory fees increased to $6,399.7 million in 2024, up 12.1% from $5,709.5 million in 2023[380]. - Investment advisory fees are influenced by the total value and composition of assets under management, which are subject to market fluctuations[319]. - Performance-based investment advisory fees are recognized when returns exceed the stated hurdle, leading to potential variability in revenue recognition[39]. - The company plans to report performance-based advisory fees separately in the income statement starting in 2024 for increased transparency[320]. Employee and Operational Metrics - As of December 31, 2024, T. Rowe Price employed 8,158 associates, reflecting a 3.2% increase from 7,906 associates at the end of 2023[55]. - The company has closed certain strategies to new investors, which represent about 7% of total assets under management as of December 31, 2024[31]. - The company is subject to net capital requirements and has met or exceeded all minimum requirements as of December 31, 2024[50]. - The weighted-average remaining lease term for the company's leases is approximately 10.2 years, with a discount rate of 3.4%[409]. Regulatory and Compliance - The company is subject to extensive regulations that could impact its operations and compliance obligations, including cybersecurity and climate-related disclosures[44]. - T. Rowe Price's subsidiaries providing transfer agent services are registered under the Securities Exchange Act of 1934, ensuring compliance with regulatory standards[48]. Market Competition - The company faces significant competition from passive investment strategies, which have taken market share from active managers[52]. Capital Management - The company repurchased common stock worth $337.2 million in 2024, compared to $254.4 million in 2023, an increase of 32.5%[312]. - The Board of Directors authorized the repurchase of up to 18,377,353 common shares as of December 31, 2024[427]. Taxation - The provision for income taxes totaled $683.8 million in 2024, up from $654.6 million in 2023, with current U.S. federal taxes amounting to $634.7 million[417]. - The effective income tax rate for 2024 was 24.3%, a decrease from 26.3% in 2023[418]. Goodwill and Intangible Assets - Goodwill remained stable at $2,642.8 million for both 2024 and 2023, while total intangible assets decreased from $3,150.1 million in 2023 to $3,010.9 million in 2024[413]. - The company evaluates goodwill for possible impairment annually in the fourth quarter, with evaluations indicating no impairment exists[352].

Core Viewpoint - T. Rowe Price Group, Inc. reported a preliminary assets under management (AUM) of $1.65 trillion for January 2025, reflecting a sequential increase of 2.7% despite experiencing net outflows of $2.1 billion during the same month [1]. AUM Performance Breakdown - At the end of January, T. Rowe Price's equity products totaled $854 billion, which is a 2.9% increase from the previous month [2]. - Fixed income products, including money market, grew by 1.1% to reach $190 billion [2]. - Multi-asset products increased by 3.2% to $553 billion [2]. - Alternative products remained stable at $53 billion compared to the prior month [2]. - Target date retirement portfolios registered $492 billion, marking a 3.4% rise from the previous month [3]. Company Outlook - The company's diversified business model and efforts to expand distribution through acquisitions are expected to support future top-line growth [4]. - The rising AUM base is viewed as encouraging, although there are concerns regarding the company's overdependence on investment advisory fees [4]. - T. Rowe Price's bottom-line growth is currently under pressure due to high costs [4]. Market Performance Comparison - Over the past six months, T. Rowe Price shares have gained 3.2%, while the industry has seen a growth of 21.8% [5].

Core Insights - T. Rowe Price Group, Inc. reported preliminary month-end assets under management of $1.65 trillion as of January 31, 2025, reflecting an increase from $1.607 trillion at the end of 2024 [1][2] - The firm experienced preliminary net outflows of $2.1 billion in January 2025 [1] - The assets under management by asset class include $854 billion in equity, $190 billion in fixed income (including money market), $553 billion in multi-asset, and $53 billion in alternatives [2] Asset Class Breakdown - Equity assets increased from $830 billion at the end of 2024 to $854 billion as of January 31, 2025 [2] - Fixed income assets rose slightly from $188 billion to $190 billion during the same period [2] - Multi-asset investments grew from $536 billion to $553 billion [2] - Alternatives remained stable at $53 billion [2] Target Date Retirement Portfolios - Target date retirement portfolios saw an increase in assets from $476 billion at the end of 2024 to $492 billion as of January 31, 2025 [2] - Approximately two-thirds of T. Rowe Price's total assets under management are related to retirement [3]

Core Viewpoint - The individual expresses a strong preference for fundamental analysis over technical analysis in financial markets, emphasizing the importance of evaluating actual company performance rather than price movements [1] Group 1: Investment Focus - The individual primarily invests in stocks and ETFs, with a preference for US companies, while also analyzing European and Chinese companies [1] - Investments are approached with a long-term perspective, often taking a contrarian view [1] Group 2: Sector Interest - The banking sector is highlighted as a key area of interest, viewed as fundamental for understanding economic health [1] - There is a noted interest in macroeconomics, indicating a broader perspective on economic factors influencing investments [1]

Company Overview - Oak Hill Advisors (OHA) is a leading global credit-focused alternative asset manager with over 30 years of investment experience, managing approximately $71 billion of capital across various credit strategies as of September 30, 2024 [3][4]. - Triumvirate Environmental, founded in 1988, provides sustainable environmental solutions to over 4,000 customers across North America, focusing on life sciences, healthcare, education, and advanced manufacturing [5]. - Berkshire Partners is a 100% employee-owned investment firm with a focus on private and public equity, currently investing from its Fund XI, which has approximately $7.8 billion in commitments [6]. Financing Details - OHA served as Administrative Agent and Joint Lead Arranger for a private unitranche facility to support Berkshire Partners' acquisition of Triumvirate Environmental, which includes a unitranche term loan, delayed draw term loan, and revolver [1][2]. - The financing solution was tailored to meet the specific needs of Berkshire Partners, leveraging OHA's flexibility and structuring expertise [2][3]. Strategic Positioning - Triumvirate has established a niche competitive position within the environmental services industry, which is expected to support its growth trajectory [3]. - OHA emphasizes long-term partnerships with companies and sponsors, providing access to proprietary opportunities and customized credit solutions across market cycles [3][4].

Company Overview - Oak Hill Advisors (OHA) is a leading global credit-focused alternative asset manager with over 30 years of investment experience, managing approximately $71 billion of capital across various credit strategies as of September 30, 2024 [3][4] - Triumvirate Environmental, founded in 1988, provides sustainable environmental solutions to over 4,000 customers across North America, focusing on life sciences, healthcare, education, and advanced manufacturing [5] - Berkshire Partners is a 100% employee-owned investment firm with a focus on private and public equity, currently investing from its Fund XI, which has approximately $7.8 billion in commitments [6] Financing Details - OHA served as Administrative Agent and Joint Lead Arranger for a private unitranche facility to support Berkshire Partners' acquisition of Triumvirate Environmental, which includes a unitranche term loan, delayed draw term loan, and revolver [1][2] - OHA's financing flexibility and structuring expertise, along with its relationship with Berkshire Partners, enabled a quick diligence process and a tailored financing solution for the acquisition [2][3] Strategic Insights - Triumvirate has established a niche competitive position within the environmental services industry, and OHA aims to support the company's growth trajectory through effective financing solutions [3]

Core Viewpoint - T. Rowe Price Group, Inc. (TROW) reported lower-than-expected results for the fourth quarter of 2024, with adjusted earnings per share of $2.12, missing the consensus estimate of $2.23, despite a year-over-year increase of 23.3% [1][3] Financial Performance - Fourth-quarter net revenues increased by 11.1% year over year to $1.82 billion, but fell short of the Zacks Consensus Estimate of $1.88 billion [4] - For the full year 2024, net revenues reached $7.09 billion, up 9.8% year over year, yet also missed the consensus estimate of $7.16 billion [4] - Investment advisory fees rose by 16.1% year over year to $1.67 billion, aligning with estimates [4] - Net income attributable to T. Rowe Price on a GAAP basis was $439.9 million, showing a slight year-over-year increase [2] Expenses and Income - Total operating expenses increased marginally to $1.26 billion in the fourth quarter, slightly below the estimate of $1.33 billion [5] - Capital allocation-based income significantly declined to negative $5.2 million from $40.2 million in the prior year quarter, primarily due to lower market returns [5] Assets Under Management (AUM) - As of December 31, 2024, total AUM grew by 11.2% year over year to $1.61 trillion, although the projection was $1.71 billion [6] - The fourth quarter saw net market appreciation and income of $5.9 billion, but net cash outflows amounted to $8.2 billion [6] Liquidity and Capital Distribution - T. Rowe Price had a strong liquidity position with cash and cash equivalents of $2.65 billion as of December 31, 2024, up from $2.07 billion a year earlier, enabling continued investment [6] - The company distributed a total of $355 million to shareholders through dividends and share repurchases in the fourth quarter [7] Strategic Outlook - TROW's solid AUM balance, expanding distribution reach, and diversification efforts through acquisitions are expected to support future top-line growth [8] - However, concerns remain regarding elevated expenses and reliance on investment advisory fees [9]

Financial Data and Key Metrics Changes - The company closed 2024 with $1.6 trillion in assets under management (AUM) and $43.2 billion in net outflows, which is a significant improvement from previous years [7][19] - Adjusted diluted earnings per share (EPS) for Q4 2024 was $2.12, bringing full-year adjusted diluted EPS to $9.33, up 23% from 2023 [18] - Full-year adjusted revenue reached nearly $7.2 billion, a 10.1% increase from 2023 [23] Business Line Data and Key Metrics Changes - The ETF business grew significantly, closing the year with almost $8 billion in AUM, with net inflows of $4.7 billion for the year, more than tripling from 2023 [10][22] - The target date franchise had net inflows of $16.3 billion for the year, with $2.2 billion in net flows for Q4, marking its strongest Q4 since 2019 [10][20] - Fixed income and alternatives also saw positive net flows for both the fourth quarter and the full year [21] Market Data and Key Metrics Changes - The EMEA and APAC regions, along with the Americas Institutional channel, experienced positive net flows during the year [21] - The company noted a significant increase in gross sales, with a strong net pipeline ending the year better than the previous year [14] Company Strategy and Development Direction - The company is focused on expanding its ETF business and enhancing its insurance asset management offerings through partnerships, particularly with Aspida [12][60] - There is a commitment to delivering innovative retirement offerings and exploring the integration of alternatives into target date products [40][41] - The company aims to leverage its strong balance sheet for potential M&A and strategic investments to enhance capabilities and client access [63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reducing outflows in 2025 and building on the momentum from 2024, despite acknowledging the challenges in the current market environment [16][110] - The company is focused on improving investment performance and strategic initiatives to regain positive net flows [110] Other Important Information - The company returned over $1.4 billion to stockholders in 2024 and maintained a strong balance sheet with $3.1 billion in cash and discretionary investments [16][28] - Adjusted operating expenses for the full year were $4.46 billion, up 6.3% from 2023, with expectations for a 4-6% increase in 2025 [26][27] Q&A Session Summary Question: Insights on the Aspida partnership and insurance opportunities - Management highlighted excitement about the partnership with Aspida, focusing on refining insurance asset management offerings and potential co-development of investment products [58][60] Question: Fee rate dynamics and outlook - Management noted higher fee compression this year, with an average of about 2%, influenced by sales in lower fee strategies and elevated redemptions in higher fee products [72][73] Question: Client demand for hybrid products - Management acknowledged the growing interest in hybrid products across public and private markets, with ongoing discussions about potential offerings [88][90] Question: Future private equity allocations in retirement products - Management indicated a commitment to offering best-in-class solutions, open to partnerships or M&A to enhance capabilities in private equity and credit [96][97] Question: Gross sales trends and pipeline context - Management reported improved gross sales across channels, with a strong pipeline for retirement date funds and a positive outlook for 2025 [104][108]

Core Insights - T. Rowe Price reported revenue of $1.82 billion for the quarter ended December 2024, reflecting an 11.1% increase year-over-year, but fell short of the Zacks Consensus Estimate by 3.02% [1] - The company's EPS was $2.12, up from $1.72 in the same quarter last year, but also missed the consensus estimate of $2.23 by 4.93% [1] Financial Performance Metrics - Assets Under Management (EOP) for Equity stood at $829.7 billion, below the average estimate of $847.53 billion [4] - Multi-asset Assets Under Management (EOP) totaled $536 billion, compared to the average estimate of $549.88 billion [4] - Total Net Cash Inflows were reported at -$19.3 billion, worse than the average estimate of -$12.84 billion [4] - Total Assets Under Management reached $1,606.6 billion, below the average estimate of $1,640.43 billion [4] - Fixed Income Assets Under Management (EOP) was $188.1 billion, slightly below the estimate of $190.6 billion [4] Revenue Breakdown - Administrative, distribution, and servicing fees generated net revenues of $143.20 million, below the average estimate of $154 million, but showed a 1.9% increase year-over-year [4] - Investment advisory fees amounted to $1.67 billion, slightly below the estimate of $1.68 billion, but represented a 14.1% increase year-over-year [4] - Capital allocation-based income reported a loss of -$5.20 million, significantly lower than the average estimate of $40.06 million, marking a 112.9% decline year-over-year [4] - Multi-asset investment advisory fees were $473.80 million, exceeding the estimate of $470.95 million, with an 18.3% year-over-year increase [4] - Fixed income investment advisory fees reached $106.20 million, slightly above the estimate of $105.81 million, reflecting an 8.2% year-over-year increase [4] - Alternatives investment advisory fees were $81 million, below the estimate of $100.57 million, showing a 17.4% decline year-over-year [4] - Equity investment advisory fees matched the estimate at $1.01 billion, with a 16.4% increase year-over-year [4] Stock Performance - T. Rowe Price shares returned +2.2% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]