Better Equity and Credit Market Conditions Have Helped Offset T. Rowe Price's Outflows

In an environment where active fund managers are under assault for poor relative performance and high fees, we believe narrow-moat T. Rowe Price is one of the better-positioned US-based traditional asset managers we cover on the active side of the business. Its biggest differentiators are the size and scale of its operations, the strength of its brands, its ability to generate above-average active fund outperformance, and reasonable fees. T. Rowe Price also has a stickier set of clients than its peers, with two-thirds of its assets under management derived from retirement-based accounts.