T. Rowe Price Group administers an eponymous family of about 100 mutual funds in a variety of investment styles. Traditionally oriented toward growth investing, the funds offer products in many risk and taxation profiles, including small-, mid-, and large-cap stock funds; money market funds; and bond funds, both taxable and nontaxable. Other services include asset management advisory services (including retirement plan advice for individuals), corporate retirement plan management, separately managed accounts, variable annuity life insurance plans, discount brokerage, and transfer agency and shareholder services. T. Rowe Price has approximately $490 billion of assets under management.
Approximately 60% of that total is held in retirement plans and variable annuities. The company's revenues are directly related to its assets under management, which have increased more than $200 billion since the end of 2008. As a result, the company's investment advisory revenues have gone up as well. The gains in assets under management were attributable to both client inflows and market appreciation. The company has also seen growth in its target-date retirement portfolios. Six of the company's largest funds -- Growth Stock, Equity Income, Mid-Cap Growth, Blue Chip Growth, Value, and Capital Appreciation -- account for about a fifth of its assets under management and a quarter of its revenue.
However, continued low interest rates have played havoc with the company's money market funds. The company waived fees and contributed more than $16 million to the funds in 2010 to offset losses and maintain neutral or positive returns for investors. The company waived fees again in 2011 (and expects to do so in 2012) but it did not contribute anything to the funds that year.
T, Rowe Price distributes its products through third-party financial intermediaries, defined-contribution retirement plans, and directly to individual and institutional investors. Most of the firm's clients are in the US, but T. Rowe Price Group also has offices in Asia, Europe, and South America and serves clients in some 30 countries. It is pursuing growth in India and China by introducing new products and services there. The company also acquired more than a quarter of India-based UTI Asset Management in 2010. – less