Group 1: S&P 500 Overview - The S&P 500 index currently has an average yield of around 1.2%, which may not be sufficient for most investors' retirement goals [1] Group 2: Realty Income - Realty Income is known as "The Monthly Dividend Company," emphasizing its commitment to reliable dividend payments, having increased payouts annually for 30 consecutive years [2] - As a major player in the net lease REIT sector, Realty Income owns over 15,600 properties, focusing on retail and industrial assets, although its growth rate is slow due to its size [3] - Realty Income offers a dividend yield of 5.3% at current share prices, making it attractive for income investors [4][7] Group 3: T. Rowe Price - T. Rowe Price has a strong asset-management business with a customer base that is generally reluctant to move their investments, contributing to its reliability [6] - The company faces pressure on its assets under management due to the rise of low-cost ETFs, but it is adapting by introducing ETFs and expanding into private market investments [8] - T. Rowe Price currently has a dividend yield of 4.9% and benefits from a debt-free balance sheet [7][8] Group 4: Bank of Nova Scotia - The Bank of Nova Scotia also offers a dividend yield of 4.9% and has a long history of paying dividends since 1833 [7]

Core Thesis - T. Rowe Price Group, Inc. is positioned for growth due to a strategic partnership with Goldman Sachs, which aims to enhance its retirement asset management offerings and access to private market assets [2][3][4] Company Overview - T. Rowe Price's share price was $104.86 as of September 17th, with trailing and forward P/E ratios of 11.74 and 10.93 respectively [1] - The company currently offers a dividend yield of 4.8%, making it attractive for income-focused investors [4] Strategic Partnership - The partnership with Goldman Sachs involves co-branded funds and retirement strategies, leveraging T. Rowe Price's asset management platform [2] - Goldman Sachs plans to acquire up to 3.5% of T. Rowe Price's stock, potentially representing a $1 billion investment [3] Market Positioning - The partnership positions both firms to capitalize on the growing trend of integrating alternative assets into retirement plans, enhancing competitiveness in the asset management space [3] - Post-transaction, insiders and institutional investors are expected to control over 87% of T. Rowe Price's float, which may create a structural floor under the stock [3] Investment Outlook - The deal is seen as a meaningful growth catalyst for T. Rowe Price, combining expanded product offerings with a concentrated shareholder base [4] - The current market price is viewed as an attractive entry point for both income-focused and strategic growth investors [4]

Core Viewpoint - T. Rowe Price (TROW) is experiencing a decline in stock performance, underperforming both the S&P 500 and the Finance sector, with upcoming financial results expected to show a decrease in EPS but an increase in revenue compared to the previous year [1][2]. Financial Performance - T. Rowe Price is expected to report an EPS of $2.41, reflecting a decrease of 6.23% from the prior-year quarter [2]. - Revenue is anticipated to be $1.83 billion, indicating a growth of 2.28% compared to the same quarter last year [2]. - For the annual period, earnings are projected at $9.18 per share, down 1.61% from last year, while revenue is expected to reach $7.17 billion, up 1.1% [3]. Analyst Estimates - Recent modifications to analyst estimates for T. Rowe Price are crucial as they indicate changing business trends, with positive changes suggesting a favorable outlook on business health and profitability [4]. - The Zacks Consensus EPS estimate has increased by 0.67% over the past month, and T. Rowe Price currently holds a Zacks Rank of 3 (Hold) [6]. Valuation Metrics - T. Rowe Price is trading at a Forward P/E ratio of 11.41, which is lower than the industry average of 12.3 [7]. - The company has a PEG ratio of 2.71, compared to the Financial - Investment Management industry's average PEG ratio of 1.33 [8]. Industry Context - The Financial - Investment Management industry is ranked 147 out of over 250 industries, placing it in the bottom 41% [8]. - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9].

Core Insights - T. Rowe Price Group (TROW) and Apollo Global Management (APO) are prominent players in the asset management industry, each with distinct strengths and focuses [1][20] - Apollo emphasizes private equity and alternative assets, while T. Rowe Price specializes in mutual funds and active management of equity and fixed income [1] Apollo Global Management (APO) - Apollo's diversified business model supports sustainable earnings, with a compound annual growth rate (CAGR) of 7.8% in assets under management (AUM) from 2021 to 2024, driven by retirement services and new financing [3] - The company expects its total AUM to reach nearly $1.5 trillion by 2029, primarily through scaling its private equity business [3][9] - Recent acquisitions, such as Bridge Investment Group Holdings, and partnerships with Mubadala and Citigroup enhance Apollo's capabilities and growth potential [4] - Apollo's revenues grew at a CAGR of 63.7% from 2021 to 2024, although growth moderated in the first half of 2025 [5] - The Zacks Consensus Estimate projects a year-over-year earnings increase of 4.7% for 2025 and 19.3% for 2026, with upward revisions in estimates over the past 60 days [10] T. Rowe Price Group (TROW) - T. Rowe Price's AUM experienced a CAGR of 2.3% from 2020 to 2024, supported by market appreciation and strength in multi-asset and fixed income [6] - The company has formed strategic alliances, including a partnership with Goldman Sachs to enhance access to private markets and an acquisition of Retiree for retirement income planning [7] - T. Rowe Price's net revenues grew at a CAGR of 3.4% over the past four years, continuing into the first half of 2025 [8] - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 1.6% for 2025, followed by a 4.9% increase in 2026, with upward revisions in estimates [13] Comparative Performance - Over the past year, Apollo outperformed the industry with a stock gain of 17.3%, while T. Rowe Price only rose 0.5% [15] - Apollo trades at a forward price-to-earnings (P/E) multiple of 16.3X, while T. Rowe Price trades at 11X, both below the industry average of 17.45X [17] - Both companies have increased dividends five times in the past five years, with Apollo's yield at 1.5% and T. Rowe Price's at 4.8% [19] Investment Outlook - Apollo is positioned for greater upside potential due to its diversified and rapidly growing alternative asset platform, aggressive expansion, and strong earnings growth trajectory [20] - T. Rowe Price offers steady growth and high dividend yield but has a more conservative approach, limiting its upside compared to Apollo [21]

Key Points Baltimore-based T. Rowe Price is partnering with Wall Street giant Goldman Sachs. Goldman is making a huge $1 billion investment in shares of the asset manager. That's doesn't actually change much about T. Rowe Price's corporate goals. 10 stocks we like better than T. Rowe Price Group › Investors often get excited about corporate news stories, especially when they come along with big numbers like $1 billion. That's how much of T. Rowe Price's (NASDAQ: TROW) stock Goldman Sachs (NYSE: G ...

Core Insights - The partnership between Goldman Sachs and T. Rowe Price aims to enhance individual investors' access to private markets through alternative investment products by late 2025, with retirement account solutions to follow in 2026 [1][9] - This initiative is a response to an executive order that expanded 401(k) plans to include private credit and private equity, potentially unlocking access to approximately $9 trillion in U.S. retirement savings [2] - Goldman Sachs will invest up to $1 billion in T. Rowe Price to strengthen their collaboration and co-develop new offerings [3][9] Product Development and Rollout - The rollout of alternative investment products will occur in stages, starting with affluent clients and later expanding to retirement savers [7] - Retirement products will initially feature small allocations to alternatives, decreasing as investors approach retirement, while specialized portfolios will combine private credit, private equity, and traditional public investments for affluent clients [4] Liquidity and Transparency Measures - To address liquidity and transparency concerns, retirement products will include daily pricing and limited liquidity options, with alternative investments potentially representing 10%–20% of retirement portfolios in the long term [5] Management Perspectives - Goldman Sachs' head of Wealth and Asset Management highlighted the goal of making these products accessible to a broader audience beyond large institutions and high-net-worth individuals [6] - T. Rowe Price's CEO expressed confidence in having various products available by mid-2026, emphasizing the importance of liquidity and daily pricing for individual investors [6] Market Context - The initiative represents a significant step in integrating alternative investments into mainstream retirement and wealth planning, combining Goldman's expertise in private markets with T. Rowe's retirement planning experience [7] - Over the past year, Goldman Sachs shares have increased by 61.8%, outperforming the industry growth of 49.3% [8]

Company Overview - T. Rowe Price Group, Inc. (TROW) is a leading global investment management firm with a market cap of $20.5 billion, headquartered in Baltimore, Maryland, offering a variety of products and services including mutual funds, retirement solutions, and advanced planning tools for individuals and institutions [1][2] Performance Analysis - TROW shares have decreased by 17.2% from their 52-week high of $125.81, reached on December 6, 2024, but have gained 13.8% over the past three months, outperforming the S&P 500 Index, which returned 10.7% in the same period [3] - Over the past 52 weeks, TROW has marginally declined, significantly lagging behind the S&P 500's 17.6% increase, and on a year-to-date basis, TROW shares are down 7.9%, compared to the S&P 500's 12.5% return [4] Market Position - TROW's stock jumped over 5% on September 4 after Goldman Sachs announced plans to invest up to $1 billion in the firm to expand private-market offerings for retail investors [5] - TROW's underperformance is notable when compared to its rival BlackRock, which has seen a 25.9% gain over the past 52 weeks and an 8.8% rise year-to-date [5] Analyst Sentiment - The stock has a consensus rating of "Moderate Sell" from 14 analysts, and it currently trades above the mean price target of $93.21 [6]

Group 1 - Goldman Sachs and T. Rowe Price plan to offer new alternative investment products for wealthy clients by the end of this year [1] - The two companies announced a partnership earlier this month to develop these investment offerings [1] - Alternative investment products targeting retirement accounts are expected to launch next year [1]

Group 1 - Goldman Sachs and T. Rowe Price are planning to introduce new alternative investments for wealthy clients by the end of 2025 and for retirement accounts in 2026 [2] - This initiative reflects a growing trend among financial institutions to diversify investment options for high-net-worth individuals and retirement savings [2] - The announcement follows recent statements from Goldman Sachs regarding their investment strategies and market positioning [3]

Group 1 - Goldman Sachs and T. Rowe Price plan to offer new alternative investments for retirement accounts by the end of the year [1][3] - The initiative follows an executive order by President Trump that expands access to alternative investments in 401(k) accounts, potentially impacting $9 trillion in assets [2] - Goldman Sachs will acquire a stake of up to $1 billion in T. Rowe Price, which manages $1.6 trillion, with around $1 trillion related to retirement [3] Group 2 - New products will include funds with targeted retirement dates, featuring a mix of alternative assets and public investments, with a decreasing proportion of alternatives as retirement approaches [4] - Wealthy clients will have access to exclusive alternative portfolios that combine private credit and equity, with plans to broaden distribution [5] - Analysts highlight risks such as liquidity and pricing transparency, but new structures may offer improved liquidity and daily pricing [6] Group 3 - Long-term projections suggest that alternative investments in retirement accounts could reach 10% to 20% of total allocations [7] - Initial discussions for the partnership began a year ago, focusing on market convergence and the growth of private assets [8]