T. Rowe Price(US:TROW)2026-02-13 17:59Investment 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].