T. Rowe Price (TROW) 26 Apr 242024 Q1 Earnings call transcript

Good morning. My name is Norma, and I will be your conference facilitator today. Welcome to T. Rowe Price's First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded and will be available for replay on T. after concludes. shortly website Price's the call Rowe

I Carruth, Investor T. turn the Relations. to Linsley call over Rowe go will ahead. now Please Price's Director of

quarter us Hello, supplemental the investors.troweprice.com. can our for for thank on document The joining found website and our release you materials first IR earnings be and call. press today at

call last will approximately Today's XX minutes.

we'll Jen discuss Our you question per CEO X XX open Sawyer, of will participant. the Global questions, time results Head up at minutes. and ask Global to President, by we'll it Then Eric Dardis, Rob your to be that Distribution, and Veiel. it We Sharps; Head about company's CFO, Investments, for which limit Dee of joined

call, and and investment groups a the of in the peer I'd in release that remind as GAAP certain using like are press and reference groups. supplemental references well forward-looking to you as Please may Morningstar this statement forward-looking number performance the we materials refer reconciliations statements during financial today's call of non-GAAP to measures. XX-Q. course to to language make All our on peer the

Now over to I'll Rob. it turn

update. this you. all thank you first for quarter joining for Linsley, thank our us And morning

our which Dee I today. Head after will Before Dee be hear provide on firm's critical from our Jen's success. results. our We'll I'm overview and our is say a firm's financial of to integral us Sawyer, to Dee to an of our that started, get pleased our member Distribution clients will business, long-term Retirement Global Management update joining and of Committee,

over markets our as first management in first quarter XXXX. under to total to the XX, increase I'll first of the trillion stronger-than-anticipated that, turn performance. under bringing quarter up March XX% $X.XX Tailwinds assets management a quarter, of assets With drove from

client demand billion improvement first quarter driving reducing first particularly performance equity. level increased half stronger and year. came of had This last of sales net outflows the about investment Our in from quarter redemptions, were U.S. $X we the in higher

on outflows to we said year. but quarter's net I call, compared improvement anticipate to expect see last last XXXX, As in substantial

improvement including by It's mandates not new can understand and to impacted activity, client be flows be will However, heavily rebalancing, this terminations. important that linear. monthly

flows in the April, to rebalancing shaping second up far large So a quarter, clients. in net weaker handful are due in be of in to part

However, the balance this of quarter pipeline at our suggests stronger. be will the point,

Investment performance medians. of was group solid beating X-year our in their XX% with first peer the quarter, funds

mention I'd like other few to highlights. a performance

value the had mid-cap financial versus top and Our peers all periods. X-year performance capital research, U.S. services funds appreciation, quartile and for equity X-, X- time

integrated our Our fundamental integrated and performers processes for Core were these Cap top combine which equity global also funds, quartile systematic periods. and U.S. time Small

XXXX the quartile to vintages performers the in retirement period. blend And well our retirement the payout dated are more our X-, nearer multi-asset funds, X-year XXXX funds managed performers and range, as launched retirement our All top recently vintages fund, quartile for periods. for of X- XXXX are as top X-year income our all

beat and bond their same their bond, multi-sector our of for X- time opportunities funds our the X-year peer and peer several U.S. credit fixed the XX% Over these dollar-hedged and periods, as third are global groups group Muni income income of our well as fixed international periods. top in medians Funds of X-, funds for

dynamics. favorable Private the and generally credit driven performance returns quarter Structured first platform attractive strong. portfolios and credit, liquid market was by selection in alternatives Investment the across strong products generated

its launch less our our to surpassed than and clients, equity assets to after under billion I want it $X in June. commitment their work capital first Before our the We in milestones last ETF associates. acknowledge to turn Jen, including reached management, to thanks I over important quarter, a hard year appreciation

Across seeing of clients. channels, wealth are improvement and individual a sales year-over-year investor with our momentum number significant with sales gross we

on major OCREDIT demonstrating first Earlier the channel. key in strategic management its close BDC the first OHA launched launching wire with this partner Rowe partnership house, a successfully in our month, Price wealth of and T.

the We retained of differentiated of Institutional over XXX managers the model top the our ranking management asset #X This in America's our XXXX corporate distinction access reflects capabilities. research position and Investors our among nominated asset of firms. importance value

Companies. XXth I'm and And our clients grateful associates they was the everything named around these Fortune accomplishments, first Most World's one the year, firm for I'm proud to who to consecutive in the our of Magazine's do. put of globe, continue Admired

provide Jen will first of quarter our overview an now that, With results.

everyone. Thank you, Retirement for results our our a quarter business. look turning review Rob, Dee at I'll first hello, before and to

adjusted higher expenses. Our AUM for higher investment XX% XXXX, $X.XX XXXX from by up of by and QX was driven and revenue per earnings QX share offset advisory average marginally

in we equity, U.S. billion mentioned, outflows strategies. growth and $X outflows Rob classes, had asset the large As particularly in quarter. net for concentrated mid-cap were Across

improvement important it's the U.S. the improved year, that to sales note investment performance. than and half outflows quarter's a were higher in by lower with last consistent and However, of driven meaningful rates, equity less level quarter first this redemption

both a were equity flows to product research of CCAP from which U.S. structured notable within of clients. and There including smaller few the areas the had franchise, strength U.S. EMEA-based companies, strong

offset the by income, in investment-grade value flows strong from channel. continued the channel DC stable outflows fixed were In institutional in

target just part And quarter, franchise Our other outflows was with products. in from $X.X date alternatives multi-asset positive $X by billion had manager-driven billion, in we outflows inflows of the from finally, under offset of for distribution.

to expect trends recent year. are in increase we and However, encouraged raising fundraising capital the through by

nearly statement. increase income last AUM. adjusted driven XX% were QX QX of year, a net higher by revenues average billion, $X.X from our to Turning

billion basis performance-based revenue fees effective U.S. advisory rate points. from $X.X fee predominantly basis of of performance-based These our fees, our of Our a $XX.X impact million investment included equity on X.X point had XX.X strategies. in X

distribution the over X% is almost and by the including costs. last announced tempered Our $X.X cost savings servicing summer. was last up year Expense QX growth and market-driven billion, were from expenses, expenses efforts we accrual adjusted bonus operating which interim

the due advertising seasonality and to operating from adjusted compensation, down Our and stock-based XXXX, QX were expenses expenses. promotion fees QX in X% professional nearly

XX% operating ago. This operating XXXX rolling increased to from year QX up brings Adjusted XX% our $XXX a to adjusted margin XX-month income from million. XX%,

equity Given the the $X.XX expense, X% be rise impact we X% expect operating months over of a markets last carried adjusted reminder, X/X up excluding our about XXXX few expenses, in interest as to expenses, to billion. over market-driven now which, and our expense XXXX's base, related is on

the our the shares XXX.X of quarter. remains to have April. Maintaining to of continued million a $X.XX strong March outstanding quarter, returned back capital a XX, of We $XX first million buy shares bought first share, distributing as dividend reducing to during Combined position stockholders in $XXX quarterly cash back per our priority. we in with million and the and back worth

on of to we ample sheet, billion capabilities $X.X our the investments have they to opportunities and to arise, select buybacks liquidity support M&A to business. our opportunistic cash recurring balance With dividend, continue pursue were add if discretionary to and

improvements decking new for We over exceptional against continue this to continue long-term while a we drive From to in and strategic the manage the added also delivering with investment and driving business growth the opportunities position, can our capabilities, by expense resources efficiency. need discipline. ongoing our lens, value for identifying clients time process with initiatives balancing

Dee. turn over I'll to it now And

pleased about am Retirement to I Jen. you, business. our join to today's talk call Thank

detailed our Rob $X.XX a X/X, over have assets. Slides our As $X retirement in component assets, clients supplemental trillion Of XX assets. trillion, business. entrusted of critical than noted, as identifiable XX retirement our is the us retirement with of view more in a and that, provide that are deck demonstrating

I moment to want to a a few highlights. take share

U.S. with in defined accounts. First, the retirement benefit the majority $XXX billion defined plans, contribution and assets, individual balance of XX% are our or in IRA

closer our or XX% a assets, our defined U.S. Taking contribution XXX at Target in Date look are almost billion franchise.

assets, are have the top position we overall. Target of we largest and active third we In manager market Date years, share X for have the held fact, a

select Target stable cap is with DC income and the for growth more being Rowe investment than equity balance options and large DC Price Date. U.S. proportion business value of largest our business. Plan well, equity sponsors of T. our the as But fixed

DC our that selects is are Rowe where DC one an or sponsor T. or majority the their kept adviser ways. serve DCIO, plan assets the plan more We a provide consultant X to of on in channel The Price in or investment-only options of DC record platform. investment the external

in We are provider fifth DCIO the the U.S. largest

or About X/X of retirement key full-service well our hire investment DC us sponsors lineup. plan which services for business, Plan we assets RPS. to as in our to their record-keeping refer services provide plan as options are as record-keeping

plans. provided end of services these we of the for As over X,XXX retirement XXXX,

consistent been is higher under assets proprietary the T. all years which About assets in administration over several has average products, of are XX% RPS a Rowe invested the XX%. of of Price industry and of portion significantly than past our

of a These offered variety custom and equity Date market-leading our for solutions. Target and through fixed franchise. broad our strategies solutions range trust wide and clients, a array funds, provide are We including common of income of

only help wellness. to Date and plan to and investment our also approaches manage both overall track extend sponsors but tools and we lower path Within active that not solutions retirement clients, retirement products, participants along their our franchise, glide financial their progress And Target accounts, help services and journey higher offer their to and include passive equity blocks. and building improve

we channel, million direct our the from to outcomes. well account relationships, as from and X.X design have with over coupled better investors. relationships to our and trends sponsors plan our investors these retirement insights work we individual identify retirement end our ability innovative Through business research solutions with pursue The enhance intermediaries, with we derive record-keeping as emerging

to have income to a assets phase, the aged become phase As savers increasingly help has retirement important. retirement decumulation accumulation from people generation into shifted convert developing and the solutions of their

services participants Our and proprietary phase. meet products decumulation that need retirement their variety needs research the suggests to in income will of a individual

as as approach we stand-alone income. retirement retirement included retirement definition within strategy leadership products we means with funds, along That a such the to income various our are So calculators services our such investment broad take offer, all payout and managed retirement products of products, income. single thought guidance, fixed including income

distribution organization advisers. retirement to consumer all through client consultants intermediaries, or allows the institutions, direct us access whether broad or Our segments, to

market in the need. have relationships, investor continuously opportunities We uniquely honed we large U.S. what us deliver other in access, directly countries. our retirement along a the anticipate adapting expertise clients savings have are to capability. end retirement adding to managing market And This as and pursue positions the we new and with result, in been also innovating

our monthly XXXX the which retirement. We throughout benefit a in managed funds offers of payout examples of income added the products, solution product, stable an of Date familiarity January. our these few all-in-one A Target for include with retirees, providing version

to Inc. designed impact critical income maximize individual is last The which early example benefits, part which the is investors of and security help favors. are participants This acquisition. of security many year's the recently Retiree for of a launched social optimizer tool, social an retirement equation

And which managed actively include portfolios the by ongoing retirement advisory professionals. to income investment retirement our financial service, and advisers planning. and personalized of tax The multi-asset expertise aware financial planning plans led the access offers

assessment. we our each portfolio multifactor manager of evolution factors path We participant third their Date through a level are analyzing provided in our using by for the an a additional driven excited retirement data, quarter. glide and will by plan deliver personalized highly personal We new plan offerings, launching robust customized approach. to Target participants be a by This dynamic monthly is

launch will a payout strategy guaranteeing designed And in while product qualified minimal after to retirement, fourth enable managed that defined consistent age. or a annuity longevity life in stream managed combine a lifetime contract for a the is to to plan The participants level with we income income income quarter, of a allow QLAC. a solution

on is the research outcomes. mention our leadership retirement our to as better develop build leverage client also retirement clients pursue of us and It a both participants platform thought topics. breadth enables to key position enable advance We industry-leading to to retirement leader relationships, important that retirement and and

pay our clients I that the will are committed prepare associates for, to deeply for and retirement. confidently saying and helping team live in close leadership our by

trust grateful continue to and us, for drive capabilities their in will We solutions use needs. and that our are to evolving meet expertise we their

open to questions. operator the ask I'll that, for line the With

America. [Operator first Siegenthaler comes from of line Craig the Bank question Instructions] of with Our

sponsors. be inside have ownership T. the DC us, investment is a Given of enter investments retirement through question that now And or one her. given Dee fund? we do joining If there Target that it includes fund with I Target is likely Date plan alternative retirement headwind potential inside more single channel, for price a anytime OHA, elections may for T. is Rowe's understand of soon, Rowe because Date alts a

this actively have alternatives, area an to been is researching. we regard With

Given plan some around such a NAV. adding regulatory daily as complexity preferences within guidance, alternatives the are and there XXX(k)

Target with could However, if long Rowe solutions we our work T. for that. Target list or with to to strategy, price of us be we or do solutions, would have were in solutions that a Date we partners introduce OHA Date alternatives including to act others order quickly able because

In to likely offer sponsors, us can we we advance that with and a to the solution regards how benefit a many continue to custom the in to be around able specifics, sponsor, would plan asking plan work we with who are have solutions.

sense. we solution, would could offer a this stand-alone Certainly, and and way it that when makes this bring also in market parallel another could we to that be if

a add to is an offering. given thought us a Rob. Craig, area we've of I'll lot our priority it's that and Yes, this is evolve for Target improve One, a Date few continue things. to And this to. just

of are very system contribution And mentioned, observation as sorts those first incorporating the Dee into sponsors amount and or of higher pricing, we've that as there daily part defined as either daily fees. investment lineup, fee interest offering date naturally accommodation of also is alternatives a alternatives in My plan things. defined liquidity, around funds. seen from stand-alone have the some a There's target of marketplace contribution sensitivity record-keeping in limitations tremendous limited

have existing are a target we've by plan, managers. usually have alternative primarily investment and an clients, and they where an of we staff investment are dates benefit seen Where where roster that have in and defined interest corporate engaged custom they designed

defined we're engaging listening that very attention or so adoption something and it's in to. in with interest of to they want. So paying there's lot clients a been We're But alternatives plan our what little far, sponsor contribution. really

Stanley. Our of Morgan the Michael comes next line from question Cyprys with

the hoping sticking theme. double I just with retirement click on was Maybe to decumulation.

opportunity set a look bit that decumulation in about next more products. biggest XX years? Just the you opportunity the have you little as hoping structures, What for think you over see product talk do could particular, the you out

far, have a to with and later the new what and curious you're launch that year, approach successful ultimately that And managed go-to-market with think be you traction just as slated you solution lifetime you will products standpoint the what the the this strategy? to income just seeing curious channels way distribution from you're about so to most win think

for the off. much I'll question. us so you Thank Great. start

us So And important our of participants. of breadth the retirement types are in types understand us first, think income I plan really access what decumulation phase. I and allows would highlight because the the varying to intermediaries of is really retirement critical platform, solutions needs for this it which participant gives to sponsors,

needs a income. our and that diverse, research and our retirement there not What is indicates these be preferences will that solution perspective for are is one-size-fits-all

solutions, are we managed nearly and using currently noted, that AUA have solutions, those XX% plans of overall our retirement in As of you represents offer coverage. which terms we XX payout do approximately

our solution X through ago, has offer services launched XXXX years retirement solution. it we income to then and extended payout solutions, that retirement our been Our plan

we fourth on planning noted, this a retirement the vehicle, Lifetime that solution, This year. be you a to calling working insured collective product. which As we're quarter we're in Managed investment will Income and trust of launch are

will earlier, and a is program retirement goes mentioned retirement we're time year. in account third as a launching, personalized launch, to be also introduced extend, of it income is way as I are also the that excited planning This into to managed We this as manager, about well. quarter which by,

it's types types solutions we as of to different individual participants, sponsors order offer to the that what plan perhaps needs, that's a way, long-winded meet that of working do well of investors, really and found in variety important we advisers. So of believe saying by as with

Our the next Dan from comes line with Jefferies. question Fannon of

well you're gross geographies as can saw was channels is provide seems improvements in hoping difference I mixed. sales a you here and/or Rob, It we the context biggest April year? bit where seeing as last more around of could versus better discussed the you maybe to you the talk what trends the lower like But redemptions. additional

that question. for changed Dan, for we discussed flows level, for Yes. outlook a say the on January quarter from what high our thanks call. the hasn't year At I the really would in fourth

we higher say this would I Although lower were that have last our now conviction substantially outflows that will be than year they year.

is We've rates talked sales pleased that growth is what a suite. continue good we've indicator U.S. and about redemption I've As be clearly seen investment large to performance impact. I And the recovery the see past, a Performance in think there beginnings in begun to U.S. of seeing, we're particularly having with cap an in equity. in in normalize. leading gross

Obviously, strong, say point. but the encouraging data where QX small, fund $X outflows retirement level in just it's momentum, half it is building, ETF year's I'd to billion last of of point is impact. our I'm growing is encouraged an date a that QX. being Dan, an in remain having flows shy

And I have general. in performance, would marked at as is just say AUM we With healthier our improved risk. less pipeline

We opportunities. notified have just the and more there's in way activity fewer wins, terminations, more around notified new unfunded of

pipeline At fee is to ultimately and OHA, basis, that flows. growth AUM think well, there in will the raising and convert going I capital

X of improving see where did gross outflows, areas With actually regard our we QX. and And modest in inflows had sales. to in we channels, with we remain channels positive less in even the redemptions in

flows to Look, hard predict. are extraordinarily

to that class -- some could compelling to against need performance, back ultimately, an target very the really allocation. and remarks, target and easily the outsized the their other gone or or have in rebalancing April that you asset you mean there clients way. prepared has have back are short noted notification I performance went we have That where did I us. As underlying rebalance impact was in instances manage

So the part those sorts flows are business. of of

think concerned or we're much losing being mandates that it I when terminated. than me is makes -- less

The through last the QX, we and thing is that in part to the really seemed that from it be flows year of I first softer get. data would industry backdrop say to has April the high-frequency with firming really regard been in the

regard to of that's period or underlying we'll the a it's think beginning a of whether have to of softer broadly. with I watch kind blip flows just So whether

are us of of way isn't throughout the ultimately, allow encouraging But that course will of as lot of a see outflows less I have kind I even it things in substantially the that there are that the if said, year, linear to, improvement.

next from comes of with Autonomous the Our line Davitt Patrick question Research.

My question to mark is it given the Q-to-date in on discount negative? full you you factoring beta that? the AUM guide. quite Or expense XQ bit a did Are the

assumptions We the last that first Patrick. quarter, for for a our Thanks, give market we the movement percentage Yes. from in -- guide, place the around we've you to estimate of average similar around of quarter used in growth reasonable quarter, an an guide. expense range as April And we back start our decrease that the the and try to start as average some in we from -- noted, average us started puts had markets in but first in perspective.

the Bank. Brian next line comes question Bedell with Our Deutsche from of

retirement of margin, lower business. Rowe economics full about think, ability in costly, terms IRA little talk just to capture how can have rollovers I Maybe a to back service versus the but Price? you, viewed to is the I there. DCIO know T. Can record-keeping be to segment a segment full-service bit the better you go you more

dynamic. can about So talk that if you

have record-keeping with more hence makes than attractive DCIO solutions, more And then the that do flexibility you from evolve standpoint? as segment that your that plans, do that to you

Sure.

question. the for thanks So

Let me a points. couple offer of

U.S. is contribution point offer roughly at contribution when of first our I you XX% the So channel. assets would management, under our those defined are assets that defined look DCIO

many on the really accounts feel strongly and channel, our across through that's we of record-keepers partners that of continue that different types many in we the so fact work business. And of about DCIO offer to types intermediary different through with hard and side solutions

that in With feel we of really services business specifically about the about fact X our good things. retirement business,

mentioned I that's is So number proprietary that fact Price. in of one, unique earlier remarks, in overall the Rowe that XX% business my and for products, in as T.

is roll advantage but thing investor individual overall if us for second needs do is see about have can they do an economics, choose, we where over. And also in that business meeting where of The participant, overall a we should terms that, an retirement they participant channel are. that

hopefully, that's helpful So perspective.

our been I The thing rollovers we've around one Yes. is our one specifically advisory would within and area that individual retirement. in is add quickly is investing that capability, investor

last optimize that's of help Retiree addition which services, year, in investor and another advisory we've in acquisition the tool decumulation, part individual business is it's So been to the investing to retirement growing.

up a quickly sponsor have to Maybe mentioned, recordkeeping the more you we solutions one out perspective. add able we in-house, picking do business because plan more on that on to are that roll point Brian, from want we

So to that all allow have record prefer. we those to more of able do the to does services more them roll test we're platform. as then that Dee another the talked about than and keeping, planned the if kind out us it broadly had earlier, we of But clients quickly on launch interworkings because those

defined also gives to clients pretty schemes with U.S. outside as us the It evolved. meaningful engage contribution of perspective some

And of another in opportunities fund partner plan existing the with sponsor But we handful to opportunity to an contribution. to we provider. approach are to the expertise leverage have with Asia. that their they really kind date one. retirement as as We're as a of of partner folks on a working people have defined there outside So U.S. develop a also

the And come with of Goldman question will Blostein from Alexander line our Sachs. next

nontraded underlying running. drivers you last little up couple here. a a and revenue launch and the I a bound see just quarters, that's been to of The base thinking was of nice growth from has the bit more we dig hoping could range OHA it's little more, out, kind guys into about BDC over so

known revenue any the related are that you business? But of kind And you to forward, accelerating in as think you of blocks you've redemptions growth call as other similar out what see regionally? there kind building seen to do might this key what

question. Yes, Alex, thanks for the

to On say be of call would I known in of enough would out terms latter, the material redemptions nothing there. kind that

you with. a that OHA deal the very there are many back, I'd step I'm elements take If say of happy

investors. it's have committed are think distressed their structure their been excellent performance They has very that I to associates fit. They deeply Their to range good an from multisector very clients. cultural to strategies are investment been across strong. of

We emerging have some distribution synergy.

launching so new in mentioned You we've from the translating also Rowe for into first of few that's around BDC T. OHA. are seen a wealth potential globe spend Price institutional the many channel, But seconds the that opportunities on there. that. now I'll And business specifically referrals multiple more the relationships

growth the their noted, deployment. you slower, the been course of have some particularly AUM liquid book. There's challenges fee-based quarters. as of has been redemptions some There the over couple last in been primarily But in around

haven't been good -- of it's enough there wide of lot suppose to is some a trigger and in thing or Some it hasn't calling spreads what trigger of deploying that capital. that based. they And distressed I a been distressed do actually

active issuance new general, rapidly. have has OHA the in that been market of and of credit There's private parts some grown most the less been in in less

or insurance senior So lending. direct

management, our product here in and would dedicated about noted gathering I was lot the I a call private said, capital expect travel earlier, under lending pipeline momentum. encouraging. I that is is flows, That particular, strengthening. is it, of of senior raising mid-teens growth their think talking direction when in capital I

to high ultimately, year, do have, AUM call kind mid they'll forward. momentum fee-based start think, this growth in it, single-digit build will -- and that of I going

as we need all And almost March Specifically things underlying for at do great in a clients. partners to had wealth it OCREDIT think assets $X.X invested experience we're the doing I to their in relates XX. OCREDIT, deliver billion and of to our we

the lined is successfully important frame, have this and launches over time most of will July and would first wire that and smaller now the beyond to of business regard the multiple filling course working our several that. we've on discussions how for and those May earlier several encouraged year. house order visibility, are And in on next unfold to say things launch We had and month, with by The I'm important launching platforms. scaling the had I up right an

range conversations had a We've really regional RIAs. to of good private from banks broker-dealers clients with large and

We that wealth specialists. this is in offerings field are education we support, additional including Again, investing bring of the channel. and hope the to several capacity and our first to sales alternative

I think sales this the I we've time found what is cycle. that this. long is done first a It's

that a anticipated it folks bring So than has what I But I at the kind anticipated think of I enthusiastic OHA taken the have very still would would really outset. time. longer will opportunity have I'm about or think it's in very, large and it

of Ken question next from with the Our JPMorgan. line Worthington comes

the change a for Dee, for couple questions at retirement? in announcement BlackRock the announced more or environment you, de-accumulation all please. competitive BlackRock the equation its Paycheck product. Does

business? peers feel you about that ahead so, is if or enough more Or do T. you And ahead this to retirement in is second, win new Maybe customization? business? Rowe existing of decumulation are keeping

your terms question of In let -- first. second me answer

with overall how our complexity the evolving approach are of we and in I that are to we position sure we making are to income retirement and we good decumulation. think continuing where needs really meet addressing a the are

And so are launching already about couple And we later already certainly the products mentioned excited a then have I we're the in development that marketplace. in in that year.

and investors. needs feel the would well sponsors to of be I able overall really to tell plan our I end so really -- position you, meet about good And

we're do sure with to clients. that to that also relationships partnering advisers I through including to we important intermediary extend and think channel, continue it's those note making plan our their end our other channels,

lineup well our that feel we about so good as And the coming. have as lineup we today

answer question part first the of the would that your or question. -- second So

about first you, in fact we income, think would what is the note that I in fair part though, your a platform. is we the to Regarding just breadth there And would important are of where of the number of say is retirement differentiated of question, as I marketplace. our tell solutions it's the

Rowe T. work that Price work is with the fact work We We globe. we with the end positioned that work We We work the fact institutions. about plan in think investors. you If across sponsors. intermediary clients clients. with with with uniquely

to We be able to support positioned that are way uniquely all the across.

around mentioned. specifically the solutions to you've have income, comparable solutions More retirement that also we

feel And there to I and mention we that isn't are anything would call. so to do well say we're that positioned, this say notable I is on behind that

Our question line Brennan Hawken from of with comes next the UBS.

about a expense couple curious on front. things was of I the

the there's U.K. that mentioned in labor of a You capitalization

curious impact So you going would about the that forward. that the quarter how what impact expense was expect and growth in

referenced a payment in research. change also around explicit You practice for

in So impact about has on XXXX of growth sort expenses? what that curious

think we nonrecurring and for of labor. onetime the a clarify, to just a not this year, into as wouldn't be in out This called wasn't the really a about material at forward. year and maybe building had going the the that. where terms first question, last to part benefit U.K. related a It's in related quarter of benefit. moved operations I of end it was first new expected We entity it our of just of to we capitalization

did as With XXXX. regard out to a that benefit research call we fees, in yes,

hard value, with work remain of we want flex to dollar that we and research work clients as regulations is those. say over but would will I fully and mix committed different receive its soft what think external time to our I and with how the

really regulatory driven client preference. by Yes, the that environment and mix is

Hall KBW. with from the of next Our line question Aidan comes

wondering you And of taking on provide to about fee by some nice place the if with then some mix given was that's of just rates class, asset asset shift quarter. your you products? this base. could in a see the Just the basis? a some it trajectory should contribution from the color go-forward be us of stronger performance on that predict, as know to normal thinking fees more we I seen it's contributor but tough performance Have

Sure.

So about we've X% we products, tend step I we the vehicles different institutional be of or or I back, about Again, past, annually. we higher if mean, on number X.X% make take can in spoken whether average, that compression specific larger by by depending choices to to mean, it's on clients, a lower our fees. fee a see

take of advantage can manage when part clients pricing have discounts they they our come when of relationships that been strategic has number we will scale, travel of of in we relationships. get direction the and a and that large for as certainly, the But

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Rob turn our portion. call And now I'll this the back Mr. to for over Q&A remarks. Sharps completes closing

All Great. you right. us your retirement your questions update Well, morning. this joining found appreciate Price. Thank Hopefully, you interest T. Dee's we informative. in Rowe for and

business. evaluate give into We will you continue of to to calls, a special integrate our future topics deeper we so can understanding

for and day. have a joining thanks us, good again, So

for This participation. today's concludes call. conference you Thank your

disconnect. may have You wonderful now Everyone, a day.