T Rowe Price GroupTROW

Morningstar Rating

Stock Research and Analysis

by Greggory Warren, CFA

We continue to believe that T. Rowe Price is one of the better-positioned asset managers, with high customer switching costs, a well-respected brand, and ample size and scale being the cornerstones of its economic moat. While its product mix may not Read more

Bulls Say

T. Rowe Price is one of the largest asset managers in the U.S., with more than 90 domestic and international stock funds, taxable and tax-exempt fixed-income funds, and money market funds.

The firm's conservative approach to investing, low fee structure, and diverse collection of no-load funds have earned 4- or 5-star ratings from Morningstar for more than 70% of its funds.

T. Rowe Price has a significant portion of its AUM concentrated in retirement accounts and variable-annuity portfolios, providing the firm with a slightly stickier collection of assets than its peers.

The firm's target-date retirement portfolios continue to be a significant source of organic growth, accounting for nearly 11% of T. Rowe Price's AUM at the end of the third quarter. Read more

Bears Say

Rapidly declining AUM values can be more troubling for T. Rowe Price, as a significant portion of its assets generate fees on the firm's daily fund levels rather than on monthly or quarterly averages.

Selling no-load mutual funds directly to investors, T. Rowe Price has traditionally done little business with the financial intermediaries--brokers, advisors, and bankers--that distribute the majority of mutual funds to retail investors in the United States. Read more

Strategy

Given the amount of no-load, low-annual-fee mutual funds T. Rowe Price has under management, the firm has focused on building scale through new investment products (like target-date retirement funds) Read more

Management

T. Rowe Price is unique among the asset managers we cover in that the firm has traditionally been run by a group of top officers (called the management committee) who consult one another before making major decisions. Although this setup has worked Read more

Profile

T. Rowe Price provides money-management services for institutional and individual investors. More than two-thirds of its assets under management are held in retirement accounts Read more

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